2020 Tax Rate Schedules SingleSchedule X Head of household Schedule Z If taxable income is: Over- of the amount If taxable income is: Over- of the amount But not But not over- The tax is: over- over- The tax is: over- $ 0 $ 9,875 . 10% $ 0 $ 0 $ 14,100 10% $ 0 ......... 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 14,100 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 53,700 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 163,300 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 207,350 518,400 154,793.50 + 37% 518,400 518,400 156,235.00 + 37% 518,400 Married filing jointly or Qualifying widow(er), Schedule Y-1 Married filing separatelySchedule Y-2 If taxable income is: Over- of the amount If taxable income is: Over- of the amount But not But not over- The tax is: over- over- The tax is: over- $ 0 $ 19,750 .10% $ 0 $ 0 $ 9,875 . 10% $ 0 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 $ 987.50 + 12% 9,875 80,250 171,050 9,235.00 + 22% 80,250 40,125 85,525 4,617.50 + 22% 40,125 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 85,525 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 163,300 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 207,350 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 311,025 Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2020. Bart incurred some significant medical expenses during the year related to an unexpected surgery. They present you with the following information: Bart Elizabeth Joint Salary (Bart) $38,000 Salary (Elizabeth) $110,000 Interest income 400 1,200 $2,200 Deductions for AGI 2,400 14,000 Medical expenses 10,427 3,358 State income tax 900 11,800 Real estate tax 5,800 Mortgage interest 4,200 Unreimbursed employee expenses 1,200 If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally. If an amount is zero, enter "0". Do not round your intermediate tax computations but round your final tax answers to the nearest dollar. Round all other computations to the nearest dollar. Complete the comparison table through AGI, then compute the total amount of the itemized deductions on the separate schedule before completing the remainder of the table. Click here to access the 2020 tax rate schedule. Bart and Elizabeth Forrest Comparison of Joint and Separate Tax Liabilities Tax Year 2020 Bart Elizabeth Joint Salary (Bart) $ 38,000 38,000 Salary (Elizabeth) 110,000 110,000 Interest income 1,500 2,300 3,800 Gross income 39,500 112,300 151,800 Less: deductions for AGI -2,400 -14,000 - 16,400 AGI $ 37,100 98,300 135,400 Medical expenses after 7.5%-of-AGI floor 2,850 x 0 8,250 X State income and real estate taxes 800 X 1,800 X 2,600 x Mortgage interest 1,900 X 1,900 X 3,800 X Total itemized deductions (MFS) or standard deduction (MFJ) $ 2,100 2,100 X $ 4,200 X Total deductions from AGI $ 458 5,800 X $ -20,600 X $ $ Taxable income $ 11,975 88,500 X 114,800 $ $ Tax $ 2,708 X 18,206 X 20,128 x Savings from filing jointly: Tax filing separately 20,903 X Tax filing jointly -20,218 x Savings $ 775 2020 Tax Rate Schedules SingleSchedule X Head of household Schedule Z If taxable income is: Over- of the amount If taxable income is: Over- of the amount But not But not over- The tax is: over- over- The tax is: over- $ 0 $ 9,875 . 10% $ 0 $ 0 $ 14,100 10% $ 0 ......... 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 14,100 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 53,700 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 163,300 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 207,350 518,400 154,793.50 + 37% 518,400 518,400 156,235.00 + 37% 518,400 Married filing jointly or Qualifying widow(er), Schedule Y-1 Married filing separatelySchedule Y-2 If taxable income is: Over- of the amount If taxable income is: Over- of the amount But not But not over- The tax is: over- over- The tax is: over- $ 0 $ 19,750 .10% $ 0 $ 0 $ 9,875 . 10% $ 0 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 $ 987.50 + 12% 9,875 80,250 171,050 9,235.00 + 22% 80,250 40,125 85,525 4,617.50 + 22% 40,125 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 85,525 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 163,300 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 207,350 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 311,025 Bart and Elizabeth Forrest are married and have no dependents. They have asked you to advise them whether they should file jointly or separately in 2020. Bart incurred some significant medical expenses during the year related to an unexpected surgery. They present you with the following information: Bart Elizabeth Joint Salary (Bart) $38,000 Salary (Elizabeth) $110,000 Interest income 400 1,200 $2,200 Deductions for AGI 2,400 14,000 Medical expenses 10,427 3,358 State income tax 900 11,800 Real estate tax 5,800 Mortgage interest 4,200 Unreimbursed employee expenses 1,200 If they file separately, Bart and Elizabeth will split the real estate tax and mortgage interest deductions equally. If an amount is zero, enter "0". Do not round your intermediate tax computations but round your final tax answers to the nearest dollar. Round all other computations to the nearest dollar. Complete the comparison table through AGI, then compute the total amount of the itemized deductions on the separate schedule before completing the remainder of the table. Click here to access the 2020 tax rate schedule. Bart and Elizabeth Forrest Comparison of Joint and Separate Tax Liabilities Tax Year 2020 Bart Elizabeth Joint Salary (Bart) $ 38,000 38,000 Salary (Elizabeth) 110,000 110,000 Interest income 1,500 2,300 3,800 Gross income 39,500 112,300 151,800 Less: deductions for AGI -2,400 -14,000 - 16,400 AGI $ 37,100 98,300 135,400 Medical expenses after 7.5%-of-AGI floor 2,850 x 0 8,250 X State income and real estate taxes 800 X 1,800 X 2,600 x Mortgage interest 1,900 X 1,900 X 3,800 X Total itemized deductions (MFS) or standard deduction (MFJ) $ 2,100 2,100 X $ 4,200 X Total deductions from AGI $ 458 5,800 X $ -20,600 X $ $ Taxable income $ 11,975 88,500 X 114,800 $ $ Tax $ 2,708 X 18,206 X 20,128 x Savings from filing jointly: Tax filing separately 20,903 X Tax filing jointly -20,218 x Savings $ 775