Tax Return Problems
56. Communications
Decision Making
Tax Forms Problem
Daniel B. Butler and his spouse Freida C. Butler file a joint return. The
Butlers live at 625 Oak Street in Corbin, KY 40701. Dan’s Social
Security number is 111-11-1112, and Freida’s is 123-45-6780. Dan was
born on January 15, 1971, and Freida was born on August 20, 1971.
Tax Formula
Salary
Interest
Exclusion
Dividends
Other Income
Total Income
Adjustments to Income
Less Standard Deduction
Taxable Income
Tax
Ordinary Income Tax
[$147,282 – $4,200]
x22% - $8,766
Tax on Qualifying Div
$4,00 x 15%
Total Tax Owed
$ 160,000
$ 2,882
( $
900)
$ 4,200
$ 7,000
$ 173,182
( $ 25,900)
$ 147,282
$ 22,712
$
630
$ 23,342