In: Accounting
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.)
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)