Charles Smith won a million-dollar lawsuit in 2016 against a pretend doctor. Smith attorney kept $400,000 and Smith got $600,000. On his 2016 tax return, Smith reported $600,000 income on his tax return. But the IRS had a different approach to the income reported by Smith. Smith is married to Martha and the filed a joint tax return for 2015. Calculate the tax liability for Smith under IRS's approach and under Smith's approach.