Question

Spilker Assignment Chapter 8 due Jan 16, up to 9 points Part 1 (4 points). See Rodney Hall's Form 1040 copied below (exhibit 4-11 on pages 4-25 and 4-26). The Spilker text used the 2017 form 1040. Please fill in the same data in the newly released 2018 form 1040 and Schedule 1, and complete the table belovw Line Description 2b 10 12 13 15 16 18 19 20a Schedule 1 Description Line 32 36 Part 2 (4 points) Show how the $14,231 tax was calculated. Please see tax rates in Appendix D, Schedule Y1 - Married filing jointly (also copied below). Please explain the calculations and'or use the spreadsheet provided for this purpose. Married Filing Jointly axable Income ax Rate

Answer 1

Ans: Entry in newly released form 1040

Line	Description	Amount ($)
1	Single
2	Married filing jointly (even only one had Income)
6	Exemption
7	Wages, salaries, tips etc.	130,000
8	Taxable Interest	600
10	Taxable refunds, credits or offsets of state and local Income taxes
11	Alimony received
12	Business Income or (loss)
13	Other Gains or (loss)
15	IRA Distribution
16	Pension and annuities
18	Farm Income and (loss)
19	Unemployed Compensation
20a	Social Security Benefits

Line Schedule 1	Description	Amount ($)
32	IRA Deduction	5,000
36	Add Lines 23 to 35	5,000

Point 2:

Computation of Income
Line	Particulars	Amount ($)
38	Adjusted Gross Total Income	125600
40	Itemized deduction Standard Deduction	-24000
41	Subtract 40 from 38	101600
43	Total Income	101600
44	Tax
	0-$19,050, (10%*$19,050)	1905
	$19,051-$77,400, (12%*$58,350)	7002
	$77,401-$165000, (22%*$24,200)	5324
	Total tax	14231

Point 3: Bifurcation of deduction of $ 2,500 as follows:

No.	Particulars	Deduction amount($)
1	Braxton Hall (dependent more then 17 years of age)	500
2	Tara Hall ( Child under age of 17 years at the end of year)	2000

So, total deduction is $ 2,500.