| Course | ACC-6060 Federal Taxation |
|---|---|
| Module | Module 2 |
| Paper type | Module 2 written assignment: a household's filing status, income and deductions |
| Length | About 829 words, 6 pages |
| Format | APA 7 student paper |
| School | Thomas Edison State University |
| Program | Master of Science in Accounting |
| Updated | October 2026 |
Free sample paper for ACC 6060 Module 2
Joint or Separate? Filing Status, Fringe Benefits and Deductions for the Osei-Brennan Household
Student Name
Master of Science in Accounting, Thomas Edison State University
ACC-6060: Federal Taxation
Mentor Name
Month Day, Year
Joint or Separate? Filing Status, Fringe Benefits and Deductions for the Osei-Brennan Household
Introduction
Filing status determines the standard deduction, the rate brackets and eligibility for many credits and deductions. Married couples usually save by filing jointly, but not always (Spilker et al., 2019). Gross income is broad, but Congress excludes many employee benefits. And deductions differ in value depending on whether they are taken in computing AGI.
The Household
Kofi earns $118,000 as an engineer; Dana earns $46,000 as a public school teacher and has $96,000 of federal student loans under an income-driven repayment plan that bases her payments on the AGI shown on her return. If the couple files jointly, the plan counts both incomes; if they file separately, it generally counts only hers. Kofi's mother, Abena, 71, lives with them, receives $19,200 of Social Security and $4,000 of pension income, and they provide more than half her support.
Part A: Joint or Separate?
The loan plan charges 10 percent of AGI above 150 percent of the 2024 poverty guideline for a household of three, $38,730. Brackets and standard deductions are the 2024 amounts (Internal Revenue Service, 2023). Wages already include Kofi's taxable fringe benefits from Part B, and Abena is claimed by Kofi under either status.
Joint tax: 10 percent of $23,200 is $2,320; 12 percent of the next $71,100 is $8,532; 22 percent of the remaining $38,000 is $8,360. Separate brackets are half as wide, so Kofi's income reaches the 24 percent bracket above $100,525. Filing jointly saves $2,183 of tax ($20,895 against $18,712), partly because separate filers lose the student loan interest deduction. But filing separately cuts Dana's loan payment by about $11,550, because the plan then counts only her AGI. On these facts, filing separately leaves the household about $9,400 better off in 2024. The couple should also weigh that the dependent care exclusion falls to $2,500 for separate filers and that repayment plan rules may change, so the choice should be revisited each year.
| 2024 | Married filing jointly | Kofi, separate | Dana, separate |
|---|---|---|---|
| Wages | $164,000 | $118,000 | $46,000 |
| Student loan interest | (2,500) | Not allowed | Not allowed |
| AGI | 161,500 | 118,000 | 46,000 |
| Standard deduction | (29,200) | (14,600) | (14,600) |
| Taxable income | 132,300 | 103,400 | 31,400 |
| Tax before credits | 19,212 | 17,859 | 3,536 |
| Credit for other dependents | (500) | (500) | None |
| Income tax | $18,712 | $17,359 | $3,536 |
| Annual loan payment | About $12,280 | None | About $730 |
Part B: Fringe Benefits
The taxable group-term life coverage is computed from an IRS age-based table and reported on Kofi's W-2; the gym membership adds $900 of wages.
| Benefit Kofi received | Treatment | Reason |
|---|---|---|
| Employer health insurance, $14,200 | Excluded | Employer-provided accident and health plans |
| Group-term life insurance with $150,000 of coverage | Value of coverage above $50,000 taxable | Only the first $50,000 is excluded |
| Employer contribution of $6,000 to his 401(k) | Excluded until withdrawn | Qualified retirement plan contribution |
| Gym membership paid by employer, $900 | Taxable | No exclusion applies |
| Commuter transit pass, $1,560 | Excluded | Qualified transportation fringe, below the 2024 limit of $315 a month |
| Dependent care assistance, $4,000 | Excluded up to $5,000, or $2,500 if filing separately | Dependent care assistance program |
Part C: Abena's Social Security
Because Abena is their dependent, her income matters for whether she must file. Her provisional income is her $4,000 pension plus half of her $19,200 of benefits, $9,600, for $13,600. For a single taxpayer, benefits are taxable only if provisional income exceeds $25,000, so none of her Social Security is taxable. Her $4,000 pension is below the standard deduction, so she owes no tax. Because her gross income, which leaves out the untaxed benefits, is under the 2024 limit of $5,050, Kofi can claim her as a qualifying relative, which provides the $500 credit for other dependents.
Part D: Deductions For and From AGI
Deductions for AGI reduce income before AGI is computed and help whether or not a taxpayer itemizes: the educator expense deduction of up to $300 for classroom supplies and the $2,500 of student loan interest the couple deducts if they file jointly are examples. Deductions from AGI are either the standard deduction or itemized deductions such as mortgage interest, state and local taxes up to the cap and charitable gifts. The couple rents, pays $11,800 of state and local income taxes and gives $1,200 to charity; their itemized deductions of $11,200, the $10,000 tax cap plus $1,200 of charity, fall below the $29,200 joint standard deduction, so they take the standard deduction. Research suggests filing choices respond to such rules; Saez (2010) found taxpayers, especially the self-employed, clustering at points where the tax schedule changes, evidence that people adjust to the structure of the tax.
The order matters for later computations. Many phaseouts, including those for education credits and the student loan interest deduction itself, are tested against modified AGI, so a deduction taken for AGI can preserve other benefits that an itemized deduction of the same amount would not. That is one reason the educator expense and student loan interest deductions are placed above the line by the Code.
References
Internal Revenue Service. (2023). Revenue Procedure 2023-34: Inflation adjusted items for 2024.
Saez, E. (2010). Do taxpayers bunch at kink points? American Economic Journal: Economic Policy, 2(3), 180-212. https://doi.org/10.1257/pol.2.3.180
Spilker, B. C., Ayers, B. C., Outslay, E., Weaver, C. D., Barrick, J. A., Robinson, J. R., & Worsham, R. G. (2019). Taxation of individuals and business entities. McGraw-Hill Education.
Reading the ACC 6060 Module 2 assignment instructions
This written assignment asks how a household's filing status, income and deductions fit together on the 2024 return. Typical items: deciding filing status and dependents, finding gross income after exclusions for fringe benefits and scholarships, working out how much Social Security is taxable and sorting deductions above and below the line, sometimes ending with taxable income and tax. The Osei-Brennan facts were invented for this page and follow 2024 law; because 2025 legislation changed several amounts for later years, use whatever year your own problems name. Some prompts end with a full computation of taxable income and tax for the household, which this sample does in Part A.
Inside the ACC 6060 Module 2 example
The introduction explains why filing status, exclusions and deduction type matter. The household's facts are given once. Part A compares joint and separate filing in a table, then weighs the tax difference against student loan payments and notes the costs of separate filing. Part B classifies six fringe benefits with reasons. Part C applies the provisional income test to a dependent's Social Security. Part D explains the difference between deductions for and from AGI and decides between itemizing and the standard deduction, with research on how taxpayers respond to the schedule's structure. Every amount is the 2024 figure, and each table shows the rule beside the number.
ACC 6060 Module 2 rubric: what earns full marks
The household problems earn up to 7 points of the ACC-6060 grade under the course rubric. Mentors check the filing status choice and the amounts that hinge on it, each fringe benefit's treatment and limit, the provisional income test, the placement of each deduction and a reasoned itemizing decision. Recognizing nontax consequences, such as student loan payments, shows applied judgment. Showing each computation, with the rule beside it, makes partial credit possible. Mentors also look for the step that ties wages, exclusions and deductions back to the return lines where they are reported. Comparing the household's total cost under each filing status, tax plus loan payments, is the step that turns the computation into advice.
Common ACC 6060 Module 2 mistakes, and how to avoid them
The errors that cost the most here are assuming joint filing always wins, treating every fringe benefit as taxable or excluded without checking limits and computing taxable Social Security from total income rather than provisional income. Look up each threshold for the year your problem uses. Remember that the state and local tax cap limits itemized deductions. Classify each deduction as for or from AGI before computing. Write the household's filing status and dependents at the top of your answer, since every later amount depends on them. Indexed amounts move each year, so flag them as you go. A free first sample of your own ACC-6060 Module 2 problems is available on request.
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ACC 6060 Module 2 questions, answered
Where can I find a free ACC 6060 Module 2 sample paper?
The Osei-Brennan household's 2024 assignment appears above: joint versus separate filing with student loans, fringe benefits, a dependent's Social Security and deductions for and from AGI.
When does married filing separately make sense?
When nontax savings, such as lower income-driven loan payments or separate liability, outweigh the usually higher combined tax and lost credits.
Is employer-paid group-term life insurance taxable?
Coverage up to $50,000 is excluded; the cost of coverage above $50,000, from an IRS table, is taxable wages.
How is taxable Social Security determined?
By provisional income, other income plus half of benefits, compared with base amounts such as $25,000 for single filers.
What is the difference between deductions for and from AGI?
Deductions for AGI reduce income before AGI and help every taxpayer; deductions from AGI are the standard deduction or itemized deductions.