Question

- Rates for a married taxpayer filing separately are 10% of taxable income up to $8,375 and 15% thereafter up to $34,000. Rates for a couple filing a joint return are 10% of taxable income up to $16,750 and 15% thereafter up to $68,000. Miller and Laura Collins are figuring their tax both ways for comparison before deciding which way to file. Miller earned $20,000 and Laura earned $40,000. The standard deduction for a married couple filing jointly is $11,400. The standard deduction for each married taxpayer filing separately is $5,700. Exemption for each taxpayer is $3,650.

a. |
Compute the amount of tax the Collins will owe if they file a joint return. |

b. |
Compute the amount of tax the Collins will owe if they file two separate returns. |

Answer #1

a) Amount of tax the Collins will owe if they file a joint return.

Particulars | Workings | Amount |

Total Income | $20000+$40000 | $60000 |

Standard Deduction | Given | ($11400) |

Exemption | $3650*2 |
($7300) |

Total taxable income |
$41300 |

Tax Computaion: $16750*10%=1675

$41300-$16750=$24550*15%=$3682.5

**Total Tax liability = $1675+$3682.5=$5357.5**

b) Tax liability if Collins file seperate return:

Particulars | Miller | Laura |

Total Income | $20000 | $40000 |

Standard Deduction | ($5700) | ($5700) |

Exemption | ($3650) | ($3650) |

Total Taxable Income |
$10650 |
$30650 |

Tax Computation |
$8375*10%=$837.5 $10650-$8375=$2275*15%=$341.25 Total Tax=$837.5+$341.25=$1178.75 |
$8375*10%=$837.5 $30650-$8375=$22275*15%=$3341.25 Total Tax=$837.5+$3341.25=$4178.75 |

**Total Tax Payable by Collins=
$1178.75+$4178.75=$5375.5**

**CONCLUSION: Tax Payable in both the situations are
equal.**

Calculate the 2017 AMT exemption amount for the following cases
for a married taxpayer filing jointly, and a married taxpayer
filing separately.
Case
AMT
1
$150,000
2
$300,000
3
$800,000
Click here to access the exemption table. Do not round
computations, but round your final amounts to the nearest dollar.
For each case above, compute the AMT exemption for 2017. Note: If
an amount is zero, enter a "0". Do not round your intermediate
computations and round your final answer...

Taxpayer and Spouse are a married couple filing a joint return
and claiming the standard deduction. The couple have the following
two dependents. During 2019, the couple earned salary of $4430,000
and interest on corporate bonds of $12,000. Determine the total
amount of Child Tax Credit and Credit for Other Dependents to which
Taxpayer is entitled for the year. Child 1, age 8 at 12/31/19 Child
2, age 17 at 12/31/19

Compute the gross income, adjusted gross income, and taxable
income in the following situation. Use the exemptions and
deductions in the table to the right. Explain how it was decided
whether to itemize deductions or use the standard deduction.
Sara is married, but she and her husband filed separately.
Her salary was $50,800, and she earned $260 in interest. She
had $5700 in itemized deductions and claimed four exemptions, for
herself and three children.
Tax Rate
Married Filing Separately
10%...

2013 Individual
Tax Rates
Single
Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $8,925
$0
10.0%
10.0%
$8,925 - $36,250
892.50
15.0
13.8
$36,250 - $87,850
4,991.25
25.0
20.4
$87,850 - $183,250
17,891.25
28.0
24.3
$183,250 - $398,350
44,603.25
33.0
29.0
$398,350 - $400,000
115,586.25
35.0
29.0
Over $400,000
116,163.75
39.6...

What would be the marginal and average tax rates for a married
couple with taxable income of $90,000? For an unmarried taxpayer
with the same income? Use Table 3.7. (Do not round
intermediate calculations. Enter the marginal tax rate as a percent
rounded to 1 decimal place. Enter the average tax rate as a percent
rounded to 1 decimal place.)
a. What would be the marginal tax rate for a
married couple with income of $90,000?
b. What would be...

2013 Individual Tax Rates
Single Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $8,925
$0
10.0%
10.0%
$8,925 - $36,250
892.50
15.0
13.8
$36,250 - $87,850
4,991.25
25.0
20.4
$87,850 - $183,250
17,891.25
28.0
24.3
$183,250 - $398,350
44,603.25
33.0
29.0
$398,350 - $400,000
115,586.25
35.0
29.0
Over $400,000
116,163.75
39.6...

25)
Leonardo, who is married but files separately, earns $64,000 of
taxable income. He also has $16,800 in city of Tulsa bonds. His
wife, Theresa, earns $51,800 of taxable income.
If Leonardo and his wife file married filing jointly in 2020,
what would be their average tax rate?(Use tax rate schedule.)
(Round your final answer to two decimal
places.)
Multiple Choice
12.00 percent
22.00 percent
14.73 percent
21.78 percent
None of the choices are correct

2013 Individual Tax Rates
Single Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $8,925
$0
10.0%
10.0%
$8,925 - $36,250
892.50
15.0
13.8
$36,250 - $87,850
4,991.25
25.0
20.4
$87,850 - $183,250
17,891.25
28.0
24.3
$183,250 - $398,350
44,603.25
33.0
29.0
$398,350 - $400,000
115,586.25
35.0
29.0
Over $400,000
116,163.75
39.6...

Mr. Mason’s salary was $397,000, and Mrs. Mason’s salary was
$344,000. They had no other income items, no above-the-line or
itemized deductions, and no dependents. Assume the taxable year is
2019. Use Individual Tax Rate Schedules and Standard Deduction
Table. Compute their tax on a joint return. Compute their combined
tax if they file separate returns (married filing separately).
Compute their marriage penalty (excess of tax on a joint return
over combined tax on two returns filed as single taxpayers).

1.Priscilla (35) is divorced from Bernardo (40). They are the
parents of Sal (12). Sal lives with his mother who pays over half
the cost of maintaining the home. The divorce decree gives Bernardo
the unconditional right to claim the dependency exemption for Sal.
Sal meets all of the tests for dependency for Priscilla for
qualifying child. What is Priscilla's most advantageous filing
status for 2018?
A. Single.
B. Head of household.
C. Married filing jointly.
D. Married filing separately....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 12 minutes ago

asked 18 minutes ago

asked 26 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago