Rates for a married taxpayer filing separately are 10% of taxable income up to $8, 375 and 15% thereafter up to $34,000. Rates for a couple filing a joint return are 10% of taxable income up to $16, 750 and 15% thereafter up to $68,000. Patrick and Kelly O'Day are figuring their tax both ways for comparison before deciding which way to file. Patrick earned $15,000 and Kelly earned $35,000. The standard deduction for a married couple filing jointly is $12,200. The standard deduction for each married taxpayer filing separately is $6,100. Exemption for each taxpayer is $3,900. a. Compute the amount of tax the O'Days will owe if they file a joint return. b. Compute the amount of tax the O'Days will owe if they file two separate returns. (For your answer, add the individual returns together.)
Rates for a married taxpayer filing separately are 10% of taxable income up to $8, 375 and 15% thereafter up to $34,000. Rates for a couple filing a joint return are 10% of taxable income up to $16, 750 and 15% thereafter up to $68,000. Patrick and Kelly O'Day are figuring their tax both ways for comparison before deciding which way to file. Patrick earned $15,000 and Kelly earned $35,000. The standard deduction for a married couple filing jointly is $12,200. The standard deduction for each married taxpayer filing separately is $6,100. Exemption for each taxpayer is $3,900. a. Compute the amount of tax the O'Days will owe if they file a joint return. b. Compute the amount of tax the O'Days will owe if they file two separate returns. (For your answer, add the individual returns together.)
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 26CE
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