Reference no: EM131882362

Questions -

1. Carrie and Stephen have gross salary and wages of $76,000 in 2012 and file a joint return. They have one dependent child, itemized deductions of $13,200, and a $240 child care credit. Determine their taxable income and their tax liability.

2. Carolyn has a 50 percent interest in a partnership that has a $14,000 loss for the year. She Actively participates in the partnership, but she also has salary from other employment of $46,000. If she is single with no dependents, what is her taxable income in 2012 and what is her tax liability?

3. John and Martha are planning to be married. Both are professionals with gross incomes of $100,000 annually. They are deciding on a wedding date. They have two dates to choose from: December 14, 2012 or January 11, 2013. If they marry on December 14, 2012, they will have to choose between married filing separately and married filing jointly. They will both claim the standard deduction. Is there an advantage to either method of filing? If they postpone their Wedding until the January date and file as single persons, will they reduce their tax bill for 2012.

4. Conrad and Anita (a college student with no income) plan to marry on December 21, 2012.Filling jointly, they expect to have $180,000 of taxable income for the year. If they wait until January of 2013 to marry, Conrad will file as a single person and report $180,000 of taxable income on his separate return Will it be advantage to marry before the end of 2012 or should they wait to 2013? How much in tax will they save or have to pay extra if they marry 2012? How would your answers change if Conrad and Anita each expect $90,000 of taxable income in 2012?