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Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,200. Meg works part-time at the same university. She earns $33,500 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)

b. What is the Comers’ tax liability for 2019 if they report the following capital gains and losses for the year?

Short-term capital gains	$	1,500
Short-term capital losses		0
Long-term capital gains		13,200
Long-term capital losses		(10,100	)

Answer 1

Matt's Income	$   64,200.00
Meg Comer's Income	$   33,500.00
Net Short Term Capital Gains	$     1,500.00
Net Long Term Capital Gains	$     3,100.00
AGI	$ 100,800.00
Less: Standard Deduction	$   24,400.00
Taxable Income	$   76,400.00
Taxed at Ordinary Rate (76400-3100)	$        73,300
Total Tax Liability (1940+12%*(73300-19401))	$          8,408
Note: For 2019, the Long-term capital gains tax rate up to $78,750 is 0%

For 2019, Capital Gains are taxed at 0%, 15% or 20%.
Your income	Long-term capital gains tax rate
$0 to $78,750	0%
$78,751 to $488,850	15%
$488,851 or more	20%
Short-term capital gains are taxed as ordinary income.