e Obama*, a married couple with three Gcc and the Barack and Michell daughters (
ID: 2561174 • Letter: E
Question
e Obama*, a married couple with three Gcc and the Barack and Michell daughters (age 15, an 18 year old freshman at oldest is 23 and a ful1-time graduate student at AS have income, expe follows. They file a joint return. nses, and other expenditures for the year as Salaries ($60,000 and $20, ooo) Speaking fees earned Interest income from: $80,000 27,000 1,450 700 50,000 20,000 3,000 4,000 6,000 1,200 7,200 2,000 3,600 2,800 10,000 5,000 1,400 1,000 Bank account Maricopa Community College bonds Inheritance received Gift from parents Contribution to Traditional I.R.A. Arizona Cardinals season tickets Food Credit card interest Interest expense on home mortgage Property taxes paid Charitable contributions Tuition and books paid to: GCC ASU Federal income tax withheld State income tax withheld State income tax refund (received in current year for prior year) Compute the amount of: a) taxable income, b) income taxes, and c) amount of tax to be paid (refunded)Explanation / Answer
Total Income of Barrack and Michelle Obama for the year ended xx/xx/xxxx Salaries 80,000 Speaking Fees earned 27,000 Interest income from Bank account 1,450 Maricopa Community college bonds 700 Inheritence received (Exempt - tax is levied on the estate) - Gift from parents - Exempt (donors pay the taxes on gifts) - Income tax refund 1,000 Gross Income 110,150 Less: Adjustments Contribution to IRA 3,000 Tution fee (Both GCC and ASU since the 23 year old is a full time student) 12,800 15,800 AGI 94,350 Standard deduction 12,700 Taxable Income 81,650 Income tax On 18,650 - 10% 1,865 $18,651 to $75,900 - 15% 8,588 $81,650- 75,901 - 25% 1,438 Total tax 11,890 Federal Taxes witheld 5,000 Federal Tax payable 6,890
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