Question - The following information relates to two married couples:
Lanes Waynes
Salary (earned by one spouse) $32,000 $115,000
Interest income 1,000 10,000
Deductible IRA contribution 5,000 0
Itemized deductions 15,000 15,000
Exemptions 7,600 7,600
Withholding 700 18,700
Compute the 2011 tax due or refund due to each couple. Assume that the itemized deductions have been reduced by the applicable floor. Ignore Credits.