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 . Patrick and Kelly O'Day are figuring their tax both ways for comparison before deciding which way to file. Patrick earned $15,00 . and Kelly earned $35,000 . 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 O'Days will owe if they file a joint return.
b. Compute the amount of tax the O'Days will owe if they file two separate returns.
a. $3,857.50
b. $3,993.75 ($565 + $ 3,428.75)
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Answer the following statement true (T) or false (F)
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