1.
Harold and Tina Skagg, both over age 65, file a joint return in 2013. They have adjusted
gross income for the year of $64,700 and $8,000 of itemized deductions. The Skaggs
Solution
Use standard deduction which is more instead of itemized. Standard deduction will be $14600
$64,700 - $14600 = $50,100
First $17,850 is at 10%. The remaining is at 15%
Total tax = $17,850(.10) = ($50,100 - $17850)(.15)
Total tax =$1,785 + $3668 = $5453
If taxable income is over
If taxable income is over