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in 2019 Lisa and Fred a married couple had taxable income of $312,000 if they were...

in 2019 Lisa and Fred a married couple had taxable income of $312,000 if they were to file separate tax returns Lisa would have reported taxable income of 129000 and Fred would have reported taxable income of 183000 what is the couple's marriage penalty or benefit?

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Expert Solution

Given Information

Particulars

Income

Lisa Taxable Income

$129,000

Fred Taxable Income

$183,000

Total

$312,000

1.Tax payable, if filed jointly ($312,000) = $28,765+(312,000-168,400) *24%

                                                                       =$28,765+$34464

                                                                       =$63,229/-

2. Tax payable, if filed single:

     Lisa ($129,000) = $14,382.5+(129,000-82,400) *24%

                                 = $14,382.5+$11,184

                                 =$25,566.5/-

    Fred ($183,000) = $32,748.5+(183000-160,725) *32%

                                 = $32,748.5+$7,128

                                = $39,876.5/-

3. Total tax payable, if filed single = $25,565.5+$39,876.5

                                                             =$65,442/-

4. Couple’s marriage benefit = $65,442-$63,229

                                                    = $2,213/-

Please like this answer, it helps me a lot. Thank You.

ekkarill92 answered 1 year ago
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