Question

John and Susan are a couple but not yet married. They are contemplating the tax effects...

John and Susan are a couple but not yet married. They are contemplating the tax effects of getting married. John earns $210,000 and Susan earns $15,000. Ignore itemized deductions and possible children. You can refer to the text for standard deduction and tax rates or to instructions to Form 1040 (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf )

Note: I am planning a series of these Scenarios with ever-increasing complexity. This assignment carrys significant weight (points) in itself, and it will also be the basis for possible future assignments. It is therefore worth your investment of time, effort and careful analysis.

Complete the following table (you must fill each empty box). Year 2019

John

Susan

Combined

John

Susan

Earns

$      210,000

$         15,000

$    225,000

$ 210,000

$     15,000

A

B

A+B

C

D

E

D+E

John Single

Susan Single

John and Susan are NOT MARRIED. What is their combined tax?

John/Susan Married Filing Jointly (MFJ)

John - Married Filing Separately (MFS)

Susan - Married Filing Separately (MFS)

Combined John/Susan MFS

Standard deduction

NA

NA

Taxable Income

NA

NA

Tax

Show calculations below

NA

NA
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Homework Answers

Answer #1
Susan Combined John Susan
John
Earns $      210,000 $         15,000 $    225,000 $210,000 $     15,000
A B A+B C D E D+E
John Single Susan Single John and Susan are NOT MARRIED. What is there combined tax? John/Susan Married Filing Jointly (MFJ) John - Married Filing Separately (MFS) Susan - Married Filing Separately (MFS) Combined John/Susan MFS
Standard deduction 12000 12000 NA 24000 12000 12000 NA
Taxable Income 210000 15000 NA 210000 15000 NA
Tax (in $) 45050 300 36818 45050 300

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