Question

In: Finance

Bill and Maria are a married couple who file a joint income tax return. They have...

Bill and Maria are a married couple who file a joint income tax return. They have two children, so they claim a total of 4 exemptions ($4,050 for each exemption). In addition, they have legitimate itemized deductions totaling $27,750. Their total income from wages is $200,800. Assume the following tax table is applicable:

​

Married Couples Filing Joint Returns

​

​

If Your Taxable

Income Is

You Pay This

Amount on the

Base of the Bracket

Plus This Percentage

on the Excess over the

Base

Average Tax

Rate at

Top of Bracket

Up to $18,650

$0.00

10.0%

10.0%

$18,650-$75,900

1,865.00

15.0   

13.8   

$75,900-$153,100

10,452.50

25.0   

19.4   

$153,100-$233,350

29,752.50

28.0   

22.4   

$233,350-$416,700

52,222.50

33.0   

27.1   

$416,700-$470,700

112,728.00

35.0   

28.0   

Over $470,700

131,628.00

39.6   

39.6   

​

What is their federal tax liability? (show step by step how to get the results).

Solutions

Expert Solution

Income from wages = $200800

Total exemptions = 4*4050 = 16200

Deductions = 27750

Taxable income = 200800 - 16200 - 27750 = $156850

This falls in 4th bucket

Hence tax liability = 29752 + 28% of (156850 - 153100) = $30802

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Susan and Stan Britton are a married couple who file a joint income tax return, where...
Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was $330,000. Do not round intermediate calculation. What is their federal tax liability? Round your answer to the nearest cent. $   What is their marginal tax rate? Round your answer to two decimal places.     % What is their average tax rate? Round your answer to two...
Pablo and Adriana, a married couple who file a joint return, purchased a $190,000 home making...
Pablo and Adriana, a married couple who file a joint return, purchased a $190,000 home making a $38,000 cash down payment and taking out a mortgage for the balance of the purchase price. They also paid the mortgage company $3,000 in points for originating the loan at closing. They paid $7,000 in interest on the mortgage this year. They also purchased a new car for $28,000 with a car loan from their credit union, paying $975 in interest for the...
James and Mary are married and file a joint tax return. Together, their taxable income is...
James and Mary are married and file a joint tax return. Together, their taxable income is $80,000. How much will they pay in taxes? (Round answers to 0 decimal place, e.g. 5275.)
1. George & Martha are married and file a joint income tax return. In 2017 the...
1. George & Martha are married and file a joint income tax return. In 2017 the couple had $ 250,000 of total income and $ 200,000 in taxable income. a. Calculate George & Martha’s Washington’s 2017 federal income tax liability (USE THE 2017 tax rate schedule in appendix D in your book). b. What is George & Martha’s marginal federal tax rate for 2017? c. What is the George & Martha’s average tax rate for 2017? d. What is the...
Tariq and Hanan are a married couple and file joint return with AGI of $275,500 for...
Tariq and Hanan are a married couple and file joint return with AGI of $275,500 for 2019.They paid $25,000 of mortgage interest, $12,000 of unreimbursed medical expenses, $5,000 of property taxes, $3,500 interest on a credit card, and $15,000 of charitable contributions for the year. How much their itemized deductions for 2019? Samira, who is single and 48 years old, itemizes her deductions, and has an AGI of $100,000. Samira provided the following information about her expenditures for 2019:             Interest...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,850. Meg works part-time at the same university. She earns $34,150 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,300. Meg works part time at the same university. She earns $33,300 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,700. Meg works part-time at the same university. She earns $34,000 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). a. a. What is the Comers’ tax liability...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,000. Meg works part time at the same university. She earns $35,500 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital...
Matt and Meg Comer are married and file a joint tax return. They do not have...
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,200. Meg works part time at the same university. She earns $33,200 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). a. What is the Comers’ tax liability...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT