Question

Andy and Sally are married and under 50. They have no dependents.

Sally’s salary (Federal withholding $3,000)                        60,000

Andy’s salary (Federal withholding $3,000)                       45,000

City of Dallas bonds                                                               1,500

Chase Bank Interest                                                                3,000

GM bonds                                                                                 5,000

Take a standard deduction, deduct their personal exemptions, and compute their tax and the tax refund or balance due:

Answer 1

Sally’s salary	60,000.00
Andy’s salary	45,000.00
Total salary Income	105,000.00
Chase Bank Interest	3,000.00
Total Income	108,000.00
Standard deduction	24,000.00
Taxable Income	84,000.00

Taxable Income	Tax Rate	Incremental Income	Tax
19,050.00	10%	19,050.00	1,905.00
77,400.00	12%	58,350.00	7,002.00
84,000.00	22%	6,600.00	1,452.00
			10,359.00

Total tax	10,359.00
With-Holdings	6,000.00
Balance Tax Due	4,359.00