David and Ruby are engaged and plan to get married. David is a full-time student and earns $6,700 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and reports $59,400 in wages.
Problem 3-39 (Algorithmic) (LO. 5, 6, 9) 2019 Tax Rate Schedules David and Ruby are engaged and plan to get married. David is a full-time student and earns $6,700 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and reports $59,400 in wages. Single-Schedule X Head of household-Schedule Z Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, If taxable of the If taxable of the enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar. income is: But not amount income is: But not amount Over- over- The tax is: over- Over- over- The tax is: over- a. Compute the following: S 0 $ 9,700 ......10% S 0 $ 13,850 ........ 1 0% 0 9,700 39,475 $ 970.00 + 12% 9,700 13,850 52,850 1,385.00 + 12% 13,850 David Ruby 39,475 84,200 39,475 52,850 84,200 6,065.00 + 22% 52,850 Filing Single Filing Single 4,543.00 + 22% 84,200 160,725 14,382.50 + 24% 84,200 84,200 160,700 12,962.00 + 24% 84,200 Gross income and AGI 6,700 59,400 160,725 204,100 32,748.50 + 32% 160,725 160,700 204,100 31,322.00 + 32% 160,700 Standard deduction 12,200 12,200 204,100 510,300 46,628.50 + 35% 204,100 204,100 510,300 45,210.00 + 35% 204,100 Taxable income 47,200 510,300 153,798.50 + 37% 510,300 510,300 152,380.00 + 37% 510,300 Income tax Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable of the income is: But not amount income is: But not amount b. Assume that David and Ruby get married in 2019 and file a joint return. What is their taxable income and income tax? Round your Over- over- The tax is: over- Over- over- The tax is: over- final answer to nearest whole dollar. S 0 $ 19,400 ......... 10% $ 0 9,700 ......... 10% Married Filing Jointly 19,400 78,950 1,940.00 + 12% 19,400 9,700 39,475 $ 970.00 + 12% 9,700 66,100 78,950 168,400 9,086.00 + 22% 78,950 39,475 84,200 4,543.00 + 22% 39,475 Gross income 168,400 321,450 28,765.00 + 24% 168,400 84,200 160,725 14,382.50 + 24% 84,200 Standard deduction 24,400 321,450 408,200 65,497.00 + 32% 321,450 160,725 204,100 32,748.50 + 32% 160,725 Taxable income 41,700 408,200 612,350 93,257.00 + 35% 408,200 204,100 306,175 46,628.50 + 35% 204,100 Income tax 612,350 . . .. ..... 164,709.50 + 37% 612,350 306,175 . . ....... 82,354.75 + 37% 306,175 c. How much Federal income tax can David and Ruby save if they get married in 2019 and file a joint return? Exhibit 3.4 Basic Standard Deduction Amounts A-Z Feedback Check My Work Filing Status 2018 2019 + Partially correct
