Ed and Wendy are a married couple with no children. Each earns $75,000 per year, and their combined household adjusted gross income is $150,000. John and Kristen also have $150,000 in combined household adjusted gross income and no children. However, Kristen earns all the income and John does not work. Finally, the standard deduction for married couples filing jointly is $24,000 and the standard deduction for a single taxpayer is $12,000. (Hint: To answer this question, you will need to use the 2018 Tax Rate Schedules attached at the end of this document. Notice how this is a dh'ferent \"version\" of figure 3 from class slides #13). a. Use the 2018 tax rates for married couples filing jointly to compute how much income tax each couple owes. Assume that both take the standard deduction. b. Does either couple pay a \"marriage tax"? Does either couple receive a "marriage benefit\"? 2018 The Tax Rate Schedules are 511mm 30 you can see the tax rate that applies to all levels of taxable income. Don't use them to gure your tax Instead, Tax Rate see the instructionsfor line 11a. Schedules Schedule XIf your ling status is Single If your taxable The tax is: income is: of the EU? \"or amount 01'9" over over $0 $9,525 ......... 10% $0 9,525 38,700 $952.50 + 12% 9,525 38,700 82,500 4,453.50 + 22% 38,700 82,500 157,500 14,089.50 + 24% 82,500 157,500 200,000 32,089.50 + 32% 157,500 200,000 500,000 45,689.50 + 35% 200,000 500,000 _________ 150,689.50 + 37% 500,000 Schedule Y-1 If your filing status is Married ling jointlyr or Qualifying widowl'er} If your taxable The tax is: income is: of the 511? \"or amount Over over over $0 $19,050 _________ 10% 50 19,050 77,400 $1,905.00 + 12% 19,050 77,400 165,000 8,907.00 + 22% 77,400 165,000 315,000 28,179.00 + 24% 165,000 315,000 400,000 64,179.00 + 32% 315,000 400,000 600,000 91,379.00 + 35% 400,000 500,000 ......... 161,379.00 + 37% 000,000 Schedule Y-2 If your filing status is Married ling separately If your taxable The tax is: income is: of the But not amount 01'9" over over $0 $9,525 ......... 10% 50 9,525 38,700 $952.50 + 12% 9,525 38,700 82,500 4,453.50 + 22% 38,700 82,500 157,500 14,089.50 + 24% 32,500 157,500 200,000 32,089.50 + 32% 157,500 200,000 300,000 45,689.50 + 35% 200,000 300,000 _________ 80,689.50 + 37% 300,000 Schedule 2 If your filing status is Head of household If your taxable The tax is: income is: of the But not amount 01'9" over over $0 $13,600 _________ 10% 50 13,800 51,800 $1,360.00 + 12% 13,000 51,800 82,500 5,944.00 + 22% 51 ,900 82,500 157,500 12,693.00 + 24% 82,500 157,500 200,000 30,693.00 + 32% 157,500 200,000 500,000 44,293.00 + 35% 200,000 500,000 _________ 149,298.00 + 37% 500,000