Comparison of Tax Tables and Tax Rate Schedules.
Response to the following problem:
Matteo (unmarried) files his tax return using head of household filing status. His taxable income is $60,550
a. What is Matteo's tax liability using the Tax Table?
b. Compute Matteo's tax liability using the tax rate schedule. Explain any difference in your answers to Parts a. and b.
c. A taxpayer, age 40, is married but files a separate return from his spouse. The taxpayer is the noncustodial parent of his 8-year-old child. His wife has signed Form 8832 giving him the right to claim their daughter as a dependent. AGI is $130,580.
d. An unmarried taxpayer, age 72, is claimed as a dependent on her son's return. Her AGI consists solely of $3,150 of taxable interest.