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Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, so they claim a total of
Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, so they claim a total of 4 exemptions. In addition, they have legitimate itemized deductions totaling $25,750. Their total income from wages is $300,500. Assume the following tax table is applicable:
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Married Couples Filing Joint Returns
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| ? 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 $18,450 | $ 0 | 10.0% | 10.0% |
| $18,450-$74,900 | 1,845.00 | 15.0 | 13.8 |
| $74,900-$151,200 | 10,312.50 | 25.0 | 19.4 |
| $151,200-$230,450 | 29,387.50 | 28.0 | 22.4 |
| $230,450-$411,500 | 51,577.50 | 33.0 | 27.1 |
| $411,500-$464,850 | 111,324.00 | 35.0 | 28.0 |
| Over $464,850 | 129,996.50 | 39.6 | 39.6 |
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What is their federal tax liability?
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