ACC 423 Individual Income Tax NAME Exit Drill Marvin, age 67, and Joanne age 66
ID: 2520508 • Letter: A
Question
ACC 423 Individual Income Tax NAME Exit Drill Marvin, age 67, and Joanne age 66 are married. They have one dependent grandchild, Jimmy, age 10, who lived with them all year. Their itemized deductions total $13,400. They incurred a capital loss of $6,500 from the sale of IBM Co. stock. They want to file a joint 2017 Federal Income Tax return. Their income is as follows: Marvin - 1) 2) $11,500 in pension income with $3,000 income tax withholdings $14,000 in social security benefits Joanne- 1) 2) 3) Wages from employment $20,000 with $1,500 income tax withholdings Gambling winnings $3,000 Interest from Regions Bank $85 Compute, in detail, a) the adjusted gross income, b) the taxable income d) indicate the amount, if any, of refund or taxes due and c) the 2017 income tax andExplanation / Answer
Particular
Amounts ($)
Pension income of Marvin
11500
Social security benefits
14000
Wages of Joanne from employment
20000
Gambling winnings
3000
Interests from bank
85
Adjusted gross income (AGI)
48585
Particular
Amounts ($)
Pension income of Marvin
11500
Social security benefits
14000
Wages of Joanne from employment
20000
Gambling winnings
3000
Interests from bank
85
Adjusted gross income (AGI)
48585
Less: Itemized deductions
13400
Taxable income
35185
For joint income tax returns tax rates are as following
Up-to $18650 @10%
1865
From $18651 to $35185 @15%
2480.1
Income tax liability
4345.1
Income tax withheld
From:
Marvin
3000
Joanne
1500
Income tax withheld in total
4500
Less: Income tax liability
4345.1
Income tax to be refunded to Marvin and Joanne
154.9
Particular
Amounts ($)
Pension income of Marvin
11500
Social security benefits
14000
Wages of Joanne from employment
20000
Gambling winnings
3000
Interests from bank
85
Adjusted gross income (AGI)
48585
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