Question

Ms. Gomez earned a $91,250 salary, and Mr. Hill earned a $171,000 salary. Neither individual had any other income, and neither can itemize deductions. Assume the taxable year is 2019. Use Individual Tax Rate Schedules and Standard Deduction Table.

A) Compute Ms. Gomez and Mr. Hill’s combined tax if they file as single individuals.

B) Compute Ms. Gomez and Mr. Hill’s tax if they are married and file a joint return.

Answer 1

A. Computation of Tax of Ms.Gomez and Mr.Hill if they file as single individuals

Salary Income of Ms.Gomez = $91,250

(-) Standard Deduction = $12,200

Taxable Income = $79,050

Tax

Bracket 38,476 - 84,200 = $4543+22% of the amount over $39,475

Tax = $4543+($79050-$39475)*22%

= $4543+$8706.50

Tax of Ms.Gomez = $13,249.50

Salary Income of Mr.Hill = $171,000

(-) Standard Deduction = $12,200

Taxable Income = $158,800

Tax

Bracket $84,201 - $160,725 = $14382.50+24% of the amount over $84,200

Tax = $14,382.50+($158,800-$84,200)*24%

= $14,382.50+$17,904

Tax of Mr.Hill = $32,286.50

Combined tax = $13,249.50+$32,286.50 = $45,536

B.

Computation of Tax of Ms.Gomez and Mr.Hill if they are married and filing jointly

Salary Income of Ms.Gomez = $91,250

Salary Income of Mr.Hill = $171,000

Total Income = $262,250

(-) Standard Deduction = $24,400

Taxable Income = $237,850

Tax Bracket

$168,401-$321,450 = $28,765+24% over the amount if $168,400

Tax = $28,765+($237,850-$168,400)*24%

= $28,765+$16,668

Tax if Ms.Gomez and Mr.Hill are filing jointly = $45,433