Brad and Angie had the following income and deductions during 2018:Salaries$110,000Interest income 10,000Itemized deductions26,000Taxes withheld during year12,000Calculate Brad and Angie's tax liability due or refund. They file a joint tax return.
What will be an ideal response?
| Salaries | $110,000 |
| Interest income | 10,000 |
| Gross income | 120,000 |
| Deduction for AGI | 0 |
| AGI | 120,000 |
| Itemized deductions | (26,000) |
| Taxable income | $94,000 |
Tax = $8,907 + .22(94,000 - 77,400) = $12,559
$12,559 - 12,000 taxes withheld = $559 taxes due
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