Ompute hanley-rebeccas gross tax if they file joint return

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During 2016, Hanley attended school for much of the year but was supported by his parents. Hanley married Rebecca in December 2016. Hanley graduated and began working full time in 2017. Rebecca worked during 2016 and earned $22,000. Hanley's only income was $1,500 of interest. Hanley's parents are in the 35% tax bracket. Thus, claiming Hanley as dependent would save them $1,418 of taxes.

a. Compute Hanley and Rebecca's gross tax if they file a joint return.

b. Compute Rebecca's gross tax if she files a separate return in order to allow hanley's parents to claim him as a dependent.

c. Which alternative would be better for the family? Will filing a joint returnsave Hanley and Rebecca more than $1,418?

Reference no: EM131251011

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