Question

1. Roger and Meredith have been married for several years. Their taxable income for 2018 was $228,700. They had AGI of $262,500 which included dividend income of $22,750. Compute their tax (show your work). Now assume that Roger is single. Compute his tax (show your work).

Answer 1

Answer:

2018 Income Tax Brackets

Rate	Individuals	Married Filing Jointly
10%	Up to $9,525	Up to $19,050
12%	$9,526 to $38,700	$19,051 to $77,400
22%	38,701 to $82,500	$77,401 to $165,000
24%	$82,501 to $157,500	$165,001 to $315,000
32%	$157,501 to $200,000	$315,001 to $400,000
35%	$200,001 to $500,000	$400,001 to $600,000
37%	over $500,000	over $600,000

Case: Where filing Jointly (Roger and Meredith)

Taxable income $228700

For upto $ 19050@10% - 1905 (19050 Multiply 10%)

From $19051 to $77400 @12% - 7001.88 (58749 Multiply 12%)

From $77,401 to $165,000 @ 22% - 19271.78 (87599 Multiply 22%)

From $165,001 to $228700 @ 24% - 15287.76 (63699 Multiply 24%)

Tax amount $ 43466.42/-

Case: Where filing Individually by assuming Roger is single

Taxable income $228700

For upto $ 9525@10% - 952.5 (9525 Multiply 10%)

From $9,526 to $38,700 @12% - 3488.88 (29074 Multiply 12%)

From 38,701 to $82,500 @ 22% - 9635.78 (43799 Multiply 22%)

From $82,501 to $157,500 @ 24% - 17999.76 (74999 Multiply 24%)

From $157,501 to $200,000 @ 32% - 13599.68 (42499 Multiply 32%)

From $200,001 to $228700 @ 35% - 10044.65 (28699 Multiply 35%)

Tax amount $ 55721.25/-