Question

Linda received $90,000 in salary income for 2018. She has no dependents. Determine her income tax liability under each of the following independent situations:

a. She files as a single individual.

b. She is married and files a joint return with her spouse. Their only income is her $90,000 salary.

c. She is married but files a separate

Answer 1

a

Particulars	Amount	Amount
Gross income:
Salary	90,000
Business income
Capital gains and interest	-
Gross income		90,000
For AGI deductions		-
AGI		90,000
Less:
Standard deduction	12,000
Itemized deduction	-
Higher of the two		12,000
Taxable income		78,000
Income tax liability		13,099.50

b

Particulars	Amount	Amount
Gross income:
Salary	90,000
Business income
Capital gains and interest	-
Gross income		90,000
For AGI deductions		-
AGI		90,000
Less:
Standard deduction	24,000
Itemized deduction	-
Higher of the two		24,000
Taxable income		66,000
Income tax liability		7,539.00

c

Particulars	Amount	Amount
Gross income:
Salary	90,000
Business income
Capital gains and interest	-
Gross income		90,000
For AGI deductions		-
AGI		90,000
Less:
Standard deduction	12,000
Itemized deduction	-
Higher of the two		12,000
Taxable income		78,000
Income tax liability		13,099.50