Question

Determine the tax liability for tax year 2019 in each of the following instances. In each case, assume the taxpayer can take only the standard deduction.

Use the appropriate Tax Tables and Tax Rate Schedules.

1. A taxpayer filing married filing separately with AGI of $68,996 and one dependent.
2. A qualifying widow, age 66, with AGI of $49,240 and one dependent.
3. A head of household with AGI of $14,392 and two dependents.
4. A head of household with AGI of $59,226 and one dependent.

(For all requirements, use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000.)

TAX LIABILITY:

1.

2.

3.

4.

Answer 1

Part 1

Taxable income = AGI - Standard deduction = 68996-12200 = $56796

Taxes = 4543 + (22%*(56796-39475)) = $8354

Tax liability 2019 = taxes - dependent credit = 8354-500 = $7854

Part 2

Taxable income = AGI - standard deduction = 49240-24400 = $24840

Taxes = 1940+ (12%*(24840-19400)) = $2593

Tax liability 2019 = taxes - dependent credit = 2593-500 = $2093

Part 3

Taxable income = AGI - standard deduction = 14392-18350 = $0

Tax liability 2019 = $0

Part 4

Taxable income = AGI - standard deduction = 59226 - 18350= $40876

Taxes = 1385 + (12%*(40876-13850)) = $4628

Tax liability 2019 = taxes - dependent credit = 4628-500 = $4128