What factors contribute to the differences in taxes


Bill and Mary plan to marry in December of 2012. Bill's salary is $32,000 and he owns a residence. His itemized deductions total $12,000. Mary's salary is $39,000. Her itemized deductions total only 1,600 as she does not own a residence. Assume that 2013 tax rates, exemptions, and standard deductions are the same as 2012.

Answer the following;

1.What will their tax be if they marry before year-end and file a joint return.

2.what will their combined taxes be for the year if they delay the marriage until 2013?

3. what factors contribute to the differences in taxes?

Show all work and calculations

 

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Accounting Basics: What factors contribute to the differences in taxes
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