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In 2021, Jasmine and Thomas, a married couple, had taxable would have reported taxable income of $140,000 and Thoma

In 2021, Jasmine and Thomas, a married couple, had taxable would have reported taxable income of $140,000 and Thoma

Individual Income Taxes
Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions
Section: Chapter Questions
Problem 49P: During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If...
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In 2021, 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.)
Transcribed Image Text:In 2021, 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.)
Schedule Y-2-Married Filing Separately If taxable income is over:But not over: The tax is: $ 0 $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 314,150 $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $33,603 plus 32% of the excess over $164,925 $ 314,150 10% of taxable income $995 plus 12% of the excess over $ 9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150
Transcribed Image Text:Schedule Y-2-Married Filing Separately If taxable income is over:But not over: The tax is: $ 0 $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 314,150 $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $33,603 plus 32% of the excess over $164,925 $ 314,150 10% of taxable income $995 plus 12% of the excess over $ 9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150
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