Adam Attended College for Much of 2016,during Which Time He

Essay

Adam attended college for much of 2016,during which time he was supported by his parents.Erin married Adam in December 2016.They live in a common law state.Adam graduated and will commence work in January 2017.Erin worked during 2016 and earned $20,000.Adam's only income was interest of $1,100.Adam's parents are in the 28% tax bracket.Thus,claiming Adam as a dependent would save them $1,134 ($4,050 × .28).
a.What is Erin and Adam's tax liability if they file a joint return?
b.What is Erin and Adam's total tax liability if they file separate returns and Adam's parents claim him as a dependent?