In: Advanced Math
Gabriella and Steve have adjusted gross incomes of $47 comma 200 and $32 comma 700, respectively. Assume that each person takes one exemption and the standard deduction. Answer parts (a) through (c) below.
Tax Rate |
Single |
Married Filing Jointly |
---|---|---|
10% |
up to $8,925 |
up to $17,850 |
15% |
up to $36,250 |
up to $72,500 |
25% |
up to $87,850 |
up to $146,400 |
28% |
up to $183,250 |
up to $223,050 |
Standard Deduction |
$6100 |
$12,200 |
Exemptions (per person) |
$3900 |
$3900 |
a. Calculate the tax owed by the couple if they delay their marriage until next year so they can each file a tax return at the single tax rate this year.
The couple owes ______
(Simplify your answer. Round to the nearest dollar as needed.)
b. Calculate the tax owed by the couple if they marry before the end of the year and file a joint return.
The couple owes____________
(Simplify your answer. Round to the nearest dollar as needed.)
c. Does the couple face a "marriage penalty" if they marry before the end of the year?