Question

# Using the married filing jointly status and their income and expense​ statement, calculate the 2014 tax...

Using the married filing jointly status and their income and expense​ statement, calculate the 2014 tax liability for Shameka and Curtis Williams. First use the standard​ deduction, and then use the following itemized​ deductions:

 Income Expenses Earned income ​\$55,000.00 Home mortgage interest ​\$8,200.00 Interest income 1,700.00 Real estate and state income taxes 3,900.00 Miscellaneous deductions 500.00

Explain to the Williams which method they should use and why.

Shameka and​ Curtis' total gross income for the 2014 tax year is ​\$_____. ​(Round to the nearest​ cent.)

 Earned Income(A) 55000 Interest Income(B) 1700 Income(C )+(A)+(B) 56700 Less: Personal Exemption(\$3950*2)=(D) 7900 Gross Income( E )=(C )-(D) 48800 * Less: Greater of Itemized deduction or Standard Deduction=(F) 12600 Taxable Income(G )=(E )-(F) 36200 ** Tax 4523 Standard Deduction for 2014 for married filing Joint Return 12400 Total of Itemized Deduction Home Mortgage Interest 8200 Real estate and state income taxes 3900 Miscellaneoud Deduction 500 Total of Itemized Deduction 12600 ** Tax Caluclation(\$1815+(\$36200-\$18150)*15% 4522.5 Shameka and​ used itemised deduction . gross income=\$36200 and Tax=\$4523