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 $20,00 . 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.
a. $5,357.50
b. $5,585 ($1,406.25 + $ 4,178.75)
You might also like to view...
The basis of cohort segmentation is that the experiences of key defining moments during the time when an individual becomes an adult can influence his or her values, preferences, and buying behaviors for the rest of his or her life
Indicate whether the statement is true or false
A relatively stable pattern of traits and characteristics that help shape a person’s behavior and make them unique is:
a. experience b. individual differences c. personality d. self-leadership skills
The auditor's report is where the auditor certifies that the financial statements are correct and accurate
Indicate whether the statement is true or false
Which of the following categories of the extended 7Ps would cleanliness of the area, neatness of
dress, and quality of signage come under? A) physical evidence B) process C) product D) people