Using the information provided below, complete the Form 1040 tax return of Tom and Mary
Smith for the 2012 tax year and submit in the assignment drop box. Using this information you
should have entries on lines: 2, 6a, 6b, 6c, 6d, 7, 8a, 22, 25, 32, 33, 36, 37, 38, 40, 41, 42, 43,
44, 46, 54 $0, 55, 61, 62, 72, and 76 $235
Tom and Mary Smith
30 Maple St.
Carrie, PA 13579
Tom’s Social Security number 123-45-6789
Mary’s Social Security number 121-21-2121
Tom & Mary have one dependent daughter Susan, her Social Security number is 456-78-9012.
Tom’s W-2 Wages $65,000
Mary’s W-2 Wages $45,000
Tom & Mary had $100 of taxable interest income
ADJUSTED GROSS INCOME
Tom Contributed $3,100 to a health savings account (HSA)
Mary Contributed $5,000 to an Individual Retirement Account (IRA)
Tom and Mary paid $2,000 in student loan interest
TAX AND CREDITS
Tom and Mary’s itemized deductions were less than the standard deduction so they will use the
MFJ standard deduction amount of $11,900.
Including Tom, Mary and their daughter Susan they have three Exemptions.
NOW USE THE FOLLOWING TAX TABLE TO CALCULATE LINE 44, TAX.
The Federal income tax system is a marginal tax system, not a flat tax system. PA sales tax is
an example of a flat tax system, meaning the rate is a flat 6%. So if you purchase something for
$1.00 your tax is 6% or 6 cents. If you purchase something for $100,000 your tax is 6% of
$100,000 or $6,000. It appears you taxed all the income at 25%. However when calculating
Federal income tax for someone with a filing status of MFJ the first $17,400 of income is taxed
at 10%, the next dollar of taxable income over $17,400 up to $70,700 is taxed at 15% and for
this problem the remaining taxable income over $70,700 is taxed at 25%. Now you need to sum
these three calculations and this is your total tax, line 44. Also, line 61 is your total tax due and
line 72 is the total you already paid. If line 61 (total tax) is greater than line 72 (payments) you
need to enter the difference on line 76 (amount you owe), if line 72 is greater than line 61 you
have overpaid and the difference gets placed on line 73 and line 74a (refund of overpayment).
Married Filing Jointly 2012 Tax Brackets
Taxable Income Marginal Tax Rate:
Tom and Mary’s combined federal income tax withheld from their W2 forms is $11,000 total.
Last Updated on December 13, 2020 by EssayPro