Question

Preston and Anna are engaged and plan to get married. Preston is a full-time student and earns $8,500 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Anna is employed and reports $68,600 in wages.

Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar.

a. Compute the following:

	Preston Filing Single		Anna Filing Single
Gross income and AGI	$		$
Standard deduction
Taxable income	$		$
Income tax	$		$

b. Assume that Preston and Anna get married in 2018 and file a joint return. What is their taxable income and income tax? Round your final answer to nearest whole dollar.

	Married Filing Jointly
Gross income	$
Standard deduction
Taxable income	$
Income tax	$

c. How much Federal income tax can Preston and Anna save if they get married in 2018 and file a joint return?
$

Answer 1

a. Individual Returns
Computation of Tax Laibility	Preston	Anna
	Filing Single	Filing Single
Gross income and AGI	8500	68600
Standard deduction	12000	12000
Taxable income	0	56600
Income tax	0	8391.5
(4453.5+(56600-38700)*22%)
b. Married & file a Joint return.
Gross income	77100
Standard deduction	24000
Taxable income	53100
Income tax	7621.5
c. Income tax David and Ruby can save if they get married in 2018 and file a joint return		770
			(8391.5-7621.5)