tax question/ problem?

Question

Carol and Robert have salaries of $35,000 and $27,000, respectively. Their itemized deductions total $6,000. They are married, under 65, and live in a common law state.
a. a) Compute their taxable income assuming that they file a joint return.
b. b) Compute their taxable income assuming that they file separate returns and that Robert claims all of the itemized deductions

Answer 1

Filing married joint returns the tax is $6014

Filing married separate the $35,000(taking the $6000 deduction) income tax is $3481.
The $27,000 income tax is $2409 for a total of $5890.
This is assuming the $6000 deduction is a none restrictive deduction--like real estate interest and tax.

Answer 2

First of all you must determine what tax year you are using. Assuming that it is 2006 this couple filing a joint return would not be well advised to use itemized deduction. With $10,3000 standard deductions and $6,600 for exemptions they will have $45,100 taxable income for a total tax of $6,006.
Should they file separately (MFS) and follow the instruction of itemizing Carol will have a tax liability of $4,476 since she will only have her personal exemption to reduce her taxable income. Robert will take the $6,000 itemized deductions and his personal exemption reducing his taxable income to $17,700 with a tax liability of $2,274. The couples total tax would be $6,750 if they file separately and itemize.
If they they use MFS and are paying separately Carol is not going to be pleased with Robert for itemizing his deductions. This realization has been known to cause couples to reconcile if only to file their tax returns.

Answer 3

First they can't itemize so will use the standard deduction. If one itemizes they both have so married filing separate is too expensive to really consider.
I am thinking common law means they are in a community property state so will both file claiming half the deduction so both need to file non itemized.

Answer 4

Sounds like a homework question to me. Do your own homework - how do you expect to function when you finish school and get a job if you have others do your homework?

These aren't hard questions - except that I'm guessing that the book said community property state, not common law, since common law would have no effect on them since you said they are married.