Abe and Betty are married and file a joint income tax return. Abe is 67 years...

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Abe and Betty are married and file a joint income tax return.Abe is 67 years old and Betty is 58 years old. Abe and Betty haveno dependents. Abe and Betty have no tax credits and had $25,000 offederal income tax withheld from their paychecks. Other informationneeded to prepare Abe and Betty’s 2018 individual income tax returnis as follows: Abe’s Salary $ 65,000 Betty’s Salary 85,000 Interestreceived on savings account 2,000 Interest received on State ofTennessee bond 3,000 Total Itemized Deductions 25,000 Calculate Abeand Betty’s: 1. Total income 2. Adjusted gross income 3. Taxableincome 4. Tax 5. Taxes due or refund 6. Marginal tax rate 7.Average tax rate 8. Effective tax rate

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3.9 Ratings (478 Votes)

Income	$ 155,000.00
Less: Exclusions	$ (3,000.00)
Total Income	$ 152,000.00
Above the line deduction	$ -
AGI	$ 152,000.00
Standard deduction	$ 25,300.00
Taxable Income	$ 129,700.00
Tax Liability	$ 20,413.00
Prepayment	$ 25,000.00
Refund	$ 4,587.00

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Abe and Betty are married and file a joint income tax return.Abe is 67 years old and Betty is 58 years old. Abe and Betty haveno dependents. Abe and Betty have no tax credits and had $25,000 offederal income tax withheld from their paychecks. Other informationneeded to prepare Abe and Betty’s 2018 individual income tax returnis as follows: Abe’s Salary $ 65,000 Betty’s Salary 85,000 Interestreceived on savings account 2,000 Interest received on State ofTennessee bond 3,000 Total Itemized Deductions 25,000 Calculate Abeand Betty’s: 1. Total income 2. Adjusted gross income 3. Taxableincome 4. Tax 5. Taxes due or refund 6. Marginal tax rate 7.Average tax rate 8. Effective tax rate