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I am trying to determine the tax liability for the following situation. Please help me understand the steps by showing work to arrive at answer.
I am trying to determine the tax liability for the following situation. Please help me understand the steps by showing work to arrive at answer.
The tax payer is using filing status of married filing jointly. Their taxable income is $144,290 that includes a qualified dividend of $4,384. According to the 2020 Federal income tax rate schedule, the tax is 9,235.00 plus 22% of the excess over 80,250.
I do know that if the taxpayer's marginal rate is 22% or over. the qualified dividends are taxed at 15%.
Thank you
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