Ch.4P3-8 - more $53,000.00 $55,100.00 $7,900.00 $3,850.00...

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Kory Nieuwkoop Personal Finance Feb. 19, 2009 Ch.4 P.3-8 P.3 She should use the Married filing jointly or Qualifying Widower if she can becaues it has a higher standard deduction. P.4 $238,500.00 $24,450.00 9.78 so 10 incrments * 2 is 20% reduced claims $214,050.00 $2,500.00 $3,100.00 5 $15,500.00 $12,400.00 exempt P.5 Form 1040 with schedule A for itemized deductions. P.6 $46,250.00 $7,150.00 $6,200.00 $32,900.00 $14,300.00 10% $1,430.00 std. deduc exempts taxable $18,600.00 15% $2,790.00 Total Taxes $4,220.00 P.7 Standard Deduction: $53,000.00 $55,100.00 $9,700.00 $6,200.00 $39,200.00 $14,300.00 10% $1,430.00 $2,100.00 G.I std. deduc exempts taxable $24,900.00 15% $3,735.00 Total Taxes $5,165.00 $307.50 Itemized Deduction:
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Unformatted text preview: more $53,000.00 $55,100.00 $7,900.00 $3,850.00 $6,200.00 $37,150.00 $14,300.00 10% $1,430.00 $2,100.00 G.I mortgage state exempts taxable $22,850.00 15% $3,427.50 Total Taxes $4,857.50 The Williams will save $307.50 if they file using Itemized Deductions. Always use the larger of standard or itemized deductions to reduce tax liability. P.8 $17,200.00 Because they are making less than $17,800 they would not generally have to file a return, but because taxable inc. their self-employment income was more than $800 they will have to file. Even without the self-employment income they should still file to get a possible refund from taxes off their pensions....
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