In 2017, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were...

In 2017, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to file separate tax returns, Jasmine would have reported taxable income of $140,000 and Thomas would have reported taxable income of $10,000. Use Tax Rate Schedule for reference.

What is the couple’s marriage penalty or benefit? (Do not round intermediate calculations. Round your answer to 2 decimal places. Input the amount as positive value.)

Solutions

Expert Solution

Answer

Married Couple	Taxable Income	Tax if jointly filed	Tax if single
Jasmine	140,000		32,181.75
Thomas	10,000		1,033.75
Jointly	150,000	28,977.50	33,215.50

Tax on Jointly Filed = $10452.5 + 25%* (150000-75900)

= 28,977.50

Tax if filed separately

Jasmine = $18713.75 + 28%* (140000-91900)

= $32,181.75

Thomas = $932.5 + 15%* (10000-9325)

= $1,033.75

Marriage benefit = $4,238 (33,215.50 - 28,977.50)

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

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?

In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were...

In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $200,000 and Fred would have reported taxable income of $100,000. A- What is the couple’s marriage penalty or benefit? (Enter a penalty as a positive and a benefit as a negative) n 2019, Jasmine and Thomas, a married couple, have taxable income of $145,000. If they were to file separate tax returns,...

Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S...

Jack and Jill, married couple, have taxable income of $395,000. Jack owns 100% of a S Corporation, which runs a successful burger restaurant. The S Corp has the following activity. How much is the IRC 199A deduction: Ordinary Income of $500,000 W-2 Wages paid of $120,000 Original cost of qualified property of $400,000

The Johnsons file a married, joint return. They had taxable income of $170,000 in 2020. Their...

The Johnsons file a married, joint return. They had taxable income of $170,000 in 2020. Their city tax rate is 3.876% and state tax rate is 6.21%. What was their total effective (marginal) tax rate? Assume they had $10,000 in short-term capital gains and $12,000 in long-term taxable gains. How much are their total taxes?

Woolard Inc. has taxable income in 2017 of $150,000 before any depreciation ($179, bonus, or MACRS)...

Woolard Inc. has taxable income in 2017 of $150,000 before any depreciation ($179, bonus, or MACRS) and acquired the following assets during the year: (Use MACRS Tables) Placed In Asset Service Basis Office Furniture March 20 $600,000 Question b. If Woolard elects the maximum amount of $179 for the year, what is the amount of deductible $179 expense for the year? What is the total depreciation expense that Woolard's $179 carryforward amount to next year, if any? c. Woolard is...

Woolard Inc. has taxable income in 2017 of $150,000 before any depreciation deductions (§179, bonus, or...

Woolard Inc. has taxable income in 2017 of $150,000 before any depreciation deductions (§179, bonus, or MACRS) and acquired the following assets during the year: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset Placed In Service Basis Office furniture (used) March 20 $ 590,000 a. If Woolard elects $50,000 of §179, what is Woolard’s total depreciation deduction for the year?...

George and Debbie were legally married on December 31 2017. can they file their 2017 income...

George and Debbie were legally married on December 31 2017. can they file their 2017 income tax return using the status of married filing jointly? Why or why not? what other filing status choices do they have, if any?

For 2017 the actual tax brackets for a single tax filer were: • For taxable income...

For 2017 the actual tax brackets for a single tax filer were: • For taxable income from $0 to $9,325, you pay 10% of it in taxes, plus • For taxable income from $9,326 to $37,950, you pay 15% of it in taxes, plus • For taxable income from $37,951 to $91,900, you pay 25% of it in taxes, plus • For taxable income from $91,901 to $191,650, you pay 28% of it in taxes, plus • For taxable income...

During the year, Nate and Olivia, a married couple filing jointly, had ordinary income totaling $60,000....

During the year, Nate and Olivia, a married couple filing jointly, had ordinary income totaling $60,000. In addition, they had short-term capital losses of $2,000 and long-term capital losses of $8,600. What amount can Nate and Olivia report as a long-term capital loss carryover to the following year? A. 5.6k B 6.8k C 7.6k D 0

Charles and Joan Thompson file a joint return. In 2017 they had taxable income of $92,370...

Charles and Joan Thompson file a joint return. In 2017 they had taxable income of $92,370 and paid tax of $14,571. Charles is an advertising executive, and Joan is a college professor. During the fall 2018 semester, Joan is planning to take a leave of absence without pay. The Thompsons expect their taxable income to drop to $70,000 in 2018. They expect their 2018 tax liability will be $8,022, which will be the approximate amount of their withholding. Joan anticipates...

Subjects