Bart and Susan Forrest are married and have no dependents. They have asked you t
ID: 2563274 • Letter: B
Question
Bart and Susan Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2017.They present you with the following information:
If they file separately, Bart and Susan will split the real estate tax and mortgage interest deductions equally.
A. Write Bart and Elizabeth a letter in which you make and explain a recommendation on filing status for 2017. Bart and Elizabeth reside at 2003 highland drive durham NC 27707
B.
Complete Barts Schedule A for 2017( use the most current version of schedule A Available). For the this Purpose Assume that Bart and Elizabeth file separate returns Bart Social Security Number is 123-45-6789
Bart Susan Joint Salary $38,000 Business net income $110,000 Interest income 400 1,200 $2,200 Deductions for AGI 2,400 14,000 Medical expenses 10,427 3,358 State income tax 800 1,800 Real estate tax 3,800 Mortgage interest 4,200 Unreimbursed employee expenses 1,200Explanation / Answer
Filing seperately is not preferable as the tax payable is more.
Filing jointly is preferable. Given below the details for your reference:
Seperately Head Jointly Bart Susan Salary 38000 38000 Business income 110000 110000 Interest income 3800 1500 2300 151800 39500 112300 Less:Deductions AGI Deduction 16400 2400 14000 Medical Expenses 13785 10427 3358 Unreimbursed employee expenses 1200 1200 State tax 2600 800 1800 Real estate tax 3800 1900 1900 Mortgage interest 4200 2100 2100 41985 18827 23158 Net Income 109815 20673 89142 Tax Payable for filing jointly 0 to 18650 1865 18650 to 75900 8587.5 75900 to 153100 8478.75 18931.25 Tax Payable for filing seperately 0 to 9325 932.5 932.5 9325 to 37950 1702.2 4293.75 37950 to 76550 9650 76550 to 116675 3525.76 2634.7 18402.01 21036.71Related Questions
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