Instructions Note: This problem is for the 2021 tax year. Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alice's birthday is September 21, 1974, and Bruce's is June 27, 1973. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification Number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (Employer Identification Number 11-1111111). The following information is shown on their Wage and Tax Statements (Form W-2) for 2021. Line Description Alice Bruce 1 Wages, tips, other compensation $58,000 $62,100 2 Federal income tax withheld 4,500 5,300. 3 Social Security wages 58,000 62,100 4 Social Security tax withheld 3,596 3,850 5 6 Medicare wages and tips Medicare tax withheld 58,000 62,100 841 900 15 State Massachusetts Massachusetts Instructions 15 State 16 State wages, tips, etc. 17 State income tax withheld Massachusetts Massachusetts 58,000 2,950 62,100 3,100 The Byrds provide over half of the support of their two children, Cynthia (born January 25, 1997, Social Security number 123-45-6788) and John (born February 7, 2001, Social Security number 123-45-6780). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $6,200 from a summer internship in 2021, and John earned $3,800 from a part-time job. Both children received scholarships covering tuition and materials. During 2021, the Byrds provided 60% of the total support of Bruce's widower father, Sam Byrd (born March 6, 1945, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam's life, received life insurance proceeds of $1,600,000 on December 28. The Byrds had the following expenses relating to their personal residence during 2021: Real estate property taxes Qualified interest on home mortgage (acquistion Indebtedness) Repairs to roof Utilities $5,000 8,700 5,750 4,100 Instructions Utilities 4,100 Fire and theft insurance 1,900 The Byrds had the following medical expenses for 2021: Medical insurance premiums $4,500 Doctor bill for Sam incurred in 2020 and not paid until 2021 7,600 Operation for Sam 8,500 Prescription medicines for Sam 900 Hospital expenses for Sam 3,500 Reimbursement from insurance company, received in 2021 3,600 The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support. Other relevant information follows: When they filed their 2020 state return in 2021, the Byrds paid additional state income tax of $900. During 2021, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In Instructions During 2021, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65). In 2021, the Byrds received interest income of $2,750, which was reported on a Form 1099-INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 (Employer Identification Number 98-7654322). The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, P.O. Box 1000, Lowell, MA 01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1, 2021) was taken out by the Byrds on May 1, 2017. Alice's employer requires that all employees wear uniforms to work. During 2021, Alice spent $850 on new uniforms and $566 on laundry charges. Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association. Neither Alice's nor Bruce's employer reimburses for employee expenses. The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. This year the Byrds gave each of their children $2,000, which was then deposited into their Roth IRAS. Alice and Bruce paid no estimated Federal income tax, and they did not engage in any virtual currency transactions during the year. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. The Byrds received the appropriate recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Required: Compute net tax payable or refund due for Alice and Bruce Byrd for 2021. If they have overpaid, they want the amount to be refunded to them. . Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. Use the Tax Rate Schedule provided. Do not use the Tax Tables. Note: for the Tax Planning section only, use the 2022 Tax Rate Schedule found in Appendix A of the textbook. Form 1040 Complete the Byrd's Form 1040 for 2021. Form Department of the Treasury Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return Filing Status. Re Your first name and middle initial Last name Cd Bruce M. Byrd th If joint return, spouse's first name and middle initial Last name: Alice J. Byrd Home address (number and street). If you have a P.O. box, see instructions. 473 Revere Avenue 2021 OMB No. 1545-0074 IRS Use Only Apt. no. City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Lowell, MA 01850 Your social security number 111-11-1113 Spouse's social security number 123-45-6784 Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. 982 th Form 1040 Foreign country name Foreign province/state/county Foreign postal code At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? Standard Deduction Age/Blindness Dependents If more than four dependents, see Instructions and check here a Someone can claim: You: Spouse: (see instructions): (2) Social security (3) Relationship (1) First name Last name number to you (4) if qualifies for (see instructions): Child tax credit Credit for other dependents John Byrd Child Sam Byrd 123-45-6787 Parent 123-45-6780 Form 1040 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 Attach Sch. Bif required. 2a Tax-exempt interest... 2a b Taxable interest... 20 2b 3a Qualified dividends.... 3a b Ordinary dividends 3b 4a IRA distributions..... 4a b Taxable amount 4b Re 5a Pensions and annuities Sa b Taxable amount. 5b Standard Cd 6a Social security benefits 6a b Taxable amount, 6b Deduction for- the 7 Single or Capital gain or (loss). Attach Schedule D if required. If not required, check here... 7 Married filing 8 Other income from Schedule 1, line 101 8 separately, 9 $12,550 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income Married filing jointly or Qualifying widow(er), $25,100 Head of 10 Adjustments to income from Schedule 1, line 26. 11 Subtract line 10 from line 9. This is your adjusted gross income 12a Standard deduction or itemized deductions (from Schedule A) 12a 9 10 11 Form 1040 separately, $12,550 9 Married filing, Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income. 10 Adjustments to income from Schedule 1, line 26 9 10 Jointly or Qualifying 11 Re Cd the widow(er), $25,100 Head of . household, $18,800 If you checked any box under 11 Subtract line 10 from line 9. This is your adjusted gross income 12a Standard deduction or itemized deductions (from) Schedule A) b Charitable contributions if you take the standard deduction (see instructions) 12a 12b c Add lines 12a and 12b.. 12c Standard Deduction, see 13 Qualified business income deduction from Form 8995 or Form 8995-A 13 instructions. 14 Add lines 12c and 13 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- 14 115 15 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2021) Form 1040 Form 1040 (2021) 16 111-11-1113 Bruce M. and Alice 3. Byrd Tax (see instructions). Check if any from Form(s): 18814 20 4972 30 17 Amount from Schedule 2, line 3... 18 Add lines 16 and 17 19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812.. 20 Amount from Schedule 3, line 8 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less, enter -0- 0000000 Page 2 16 17 18 19 20 21 21 22 23 Other taxes, including self-employment tax, from Schedule 2, line 21. 23 24 Add lines 22 and 23. This is your total tax. 24 25 Federal income tax withheld from:. a Form(s) W-2.. 25a Form 1040 If you have a qualifying child, attach Sch. EIC. b Form(s) 1099 c Other forms (see instructions). d Add lines 25a through 25c.. 25b 25c 26 2021 estimated tax payments and amount applied from 2020 return. 27a Earned income credit (EIC).. 27a Check here if you were born after January 1, 1998, and before January 2, 2004, and you satisfy all the other requirements for taxpayers who are at least age 18, to claim the EIC. See instructions.. b Nontaxable combat pay election.. 27b c Prior year (2019) earned income.. 27c 28 Refundable child tax credit or additional child tax credit from Schedule 8812.. 28 29 American opportunity credit from Form 8863, line 8 29 30 Recovery rebate credit. See instructions.... 30 25d 26 Form 1040 31 Amount from Schedule 3, line 15 31 32 Add lines 27a and 28 through 31. These are your total other payments and refundable credits.... 33 Add lines 25d, 26, and 32. These are your total payments. 32 22 33 34 Refund If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid. 34 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here a Direct deposit? b Routing number c Type: Checking Savings See instructions. d Account number 36 Amount of line 34 you want applied to your 2022 estimated tax 36 37 Amount Amount You Owe. Subtract line 33 from line 24. For details on how to pay, see Instructions.. You Owe 38 Estimated tax penalty (see instructions) 38 35a 37 Form 1040 Third Party Designee Do you want to allow another person to discuss this return with the IRS? See Instructions. Yes. Complete below. No Designee's name Phone no. -> Personal identification number (PIN) Sign Here Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Joint return? See Manager Instructions. Keep a copy for Spouse's signature. If a joint Date Spouse's occupation your records. return, both must sign. Manager Phone no. Email address If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Form 1040 Here Joint return? See instructions. Keep a copy for your records. taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Manager Spouse's signature. If a joint Date return, both must sign. Spouse's occupation If the IRS sent your spouse an Manager Identity Protection PIN, enter it here (see inst.) Paid Preparer Phone no. Preparer's name Email address Preparer's signature Self-Prepared Date PTIN Firm's name Check if: Self-employed Phone no. Use Only Firm's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2021) Schedule A Complete Alice and Bruce Byrd's Schedule A for 2021, SCHEDULE A (Form 1040) Department of the Treasury Internal Revenue Service (99) Itemized Deductions Go to www.irs.gov/ScheduleA for instructions and the latest information. Attach to Form 1040 or 1040-SR. Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. OMB No. 1545-0074 2021 Attachment Sequence No. 07 Your social security number Name(s) shown on Form 1040 or 1040-SR Bruce M. and Alice J. Byrd Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions).. 1 Medical and Dental Expenses 2. Enter amount from Form 1040 or 1040- SR, line 11..... 3 Multiply line 2 by 7.5% (0.075). 2 3 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 111-11-1113 Schedule A Taxes You Paid 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-.... 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box. b State and local real estate taxes (see instructions) e State and local personal property taxes. d Add lines 5a through Sc. . 5a 5b 50 5c 5d e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately)... Se 6 Other taxes. List type and amount 7 Add lines 5e and 6 Schedule A Interest You Paid Caution: Your mortgage interest deduction may be limited (see instructions). 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box. a Home mortgage interest and points reported to you on Form 1098. See instructions if limited..... b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, Identifying no., and address c Points not reported to you on Form 1098. See instructions for special rules.. d Mortage insurance premiums (see instructions) e Add lines 8a through 8d....... 9 Investment interest. Attach Form 4952 if required. See instructions. 10 Add lines 8e and 9 8a 8b 8c 8d Be 9 10 Schedule A Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions. Caution: 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500.... If you made a gift and got a 13 Carryover from prior year benefit for it, see instructions. 14 Add lines 11 through 13 15 11 12 13 Casualty and Theft Losses Other Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions. 16 Other-from list in instructions. List type and amount Itemized 14 15 Deductions 16 16 Total Itemized 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 12a.. 17 18 If you elect to itemize deductions even though they are less than your standard deduction, 0000 Schedule B Complete Alice and Bruce Byrd's Schedule B 2021. SCHEDULE B (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Bruce M. and Alice J. Byrd Part I Interest (See instructions and the instructions for Form 1040, line 2b.) Interest and Ordinary Dividends Go to www.irs.gov/ScheduleB for instructions and the latest information. Attach to Form 1040 or 1040-SR. 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address OMB No. 1545-0074 2021 Attachment Sequence No. 08 Your social security number 111-11-1113 Amount Schedule B Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 1 2 Add the amounts on line 1.. 2 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b 4 Note: If line 4 is over $1,500, you must complete Part III. Amount Part II 5 List name of payer Ordinary Dividends Schedule B (See instructions and the instructions for Form 1040, line 3b.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b. Note: If line 6 is over $1,500, you must complete Part III. 6 Schedule B Part III Foreign Accounts and Trusts Caution: If required, failure to file FinCEN Form 114 may result in substantial penalties. See instructions. www.trime DOT for mode complete core man You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. 7a b 8 At any time during 2021, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions.. If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements........ If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located During 2021, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes,' you may have to file Form 3520. See instructions.. BAA For Paperwork Reduction Act Notice, see your tax return instructions. Yes No X X Schedule B (Form 1040) 2021 Schedule 8812 Complete Alice and Bruce Byrd's Schedule 8812. SCHEDULE 8812 (Form 1040) Department of the Treasury Credits for Qualifying Children and Other Dependents Attach to Form 1040, 1040-SR, or 1040-NR. Internal Revenue Service (99) Go to www.irs.gov/Schedule8812 for instructions and the latest information. Name(s) shown on return Bruce M. and Alice J. Byrd Part 1-A Child Tax Credit and Credit for Other Dependents OMB No. 1545-0074 2021 Attachment Sequence No. 47 Your social security number 111-11-1113 1 Enter the amount from line 11 of your Form 1040, 1040-SR, or 1040-NR. 1 2a Enter income from Puerto Rico that you excluded... b Enter the amounts from lines 45 and 50 of your Form 2555. c Enter the amount from line 15 of your Form 4563 d Add lines 2a through 2c. 2a 2b 2c 2d Schedule 8812 d Add lines 2a through 2c. 3 Add lines 1 and 2d 4a Number of qualifying children under age 18 with the required social security number 4a b Number of children included on line 4a who were under age 6 at the end of 2021. 4b c Subtract line 4b from line 4a. 4c 5 If line 4a is more than zero, enter the amount from the Line 5 Worksheet; otherwise, enter -0- . 6 Number of other dependents, including any qualifying children who are not under age 18 or who do not have the required social security number.. Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, do not include anyone you included on line 4a. 7 Multiply line 6 by $500. 8 Add lines 5 and 7 9 Enter the amount shown below for your filing status. 8 2d 3 Schedule 8812 9 Enter the amount shown below for your filing status. Married filing jointly-$400,000 All other filing statuses-$200,000 } 10 Subtract line 9 from line 3. 9 If zero or less, enter -0- If more than zero and not a multiple of $1,000, enter the next multiple of $1,000. For example, if the result is $425, enter $1,000; if the result is $1,025, enter $2,000, etc. 11 Multiply line 10 by 5% (0.05). 12 Subtract line 11 from line 8. If zero or less, enter -0. 13 Check all the boxes that apply to you (or your spouse if married filing jointly). } 10 11 A Check here if you (or your spouse if married filing jointly) have a principal place of abode in the United States for more than half of 2021 B Check here if you (or your spouse if married filing jointly) are a bona fide resident of Puerto Rico for 2021 12 Schedule 8812 Part I-B Filers Who Check a Box on Line 13 Caution: If you did not check a box on line 13, do not complete Part 1-B; instead, skip to Part I-C. 14a Enter the smaller of line 7 or line 12 b Subtract line 14a from line 12. c If line 14a is zero, enter -0-; otherwise, enter the amount from the Credit Limit Worksheet A d Enter the smaller of line 14a or line 14c. e Add lines 14b and 14d. f Enter the aggregate amount of advance child tax credit payments you (and your spouse if filing jointly) received for 2021. See your Letter(s) 6419 for the amounts to include on this line. If you are missing Letter 6419, see the instructions before entering an amount on this line....... Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if filing jointly) on your Letter(s) 6419, the processing of your return will be delayed. 14a 14b 14c 14d 14e 14f 9 Subtract line 14f from line 14e. If zero or less, enter -0- on lines 14g through 141 and go to Part III..... 149 Schedule 8812 d Enter the smaller of line 14a or line 14c.. e Add lines 14b and 14d. f Enter the aggregate amount of advance child tax credit payments you (and your spouse if filing jointly) received for 2021. See your Letter(s) 6419 for the amounts to include on this line. If you are missing Letter 6419, see the instructions before entering an amount on this line. Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if filing jointly) on your Letter(s) 6419, the processing of your return will be delayed. 9 Subtract line 14f from line 14e. If zero or less, enter -0- on lines 14g through 141 and go to Part III........ h Enter the smaller of line 14d or line 14g. This is your credit for other dependents. Enter this amount on line 19 of your Form 1040, 1040-SR, or 1040-NR... I Subtract line 14h from line 14g. This is your refundable child tax credit. Enter this amount on line 28 of your Form 1040, 1040-SR, or 1040-NR For Paperwork Reduction Act Notice, see your tax return instructions. 14d 14e 14f 14g 14h 141 000000 Schedule 8812 (Form 1040) 2021 Tax Planning for 2022 Alice and Bruce are planning some significant changes for 2022. They have provided you with the following information and asked you to project their taxable income and tax liability for 2022. Assume that the Byrds will itemize their deductions next year. The Byrds will invest the $1,600,000 of life insurance proceeds in short-term certificates of deposit (CDs) and use the interest for living expenses during 2022. They expect to earn interest of $32,000 on the CDs. Bruce has been promoted to regional manager, and his salary for 2022 will be $88,000. He estimates that state income tax withheld will increase by $4,000 and the Social Security tax withheld will be $5,456. Alice, who has been diagnosed with a serious illness, will take a leave of absence from work during 2022, so she will not receive a salary or incur any work-related expenses during the year. The estimated cost for her medical treatment is $15,400, of which $6,400 will be reimbursed by their insurance company in 2022. Their medical insurance premiums will increase to $9,769. Property taxes on their residence are expected to increase to $5,100. The Byrds' home mortgage interest expense and charitable contributions are expected to be unchanged from 2021. John will graduate from college in December 2021 and will take a job in New York City in January 2022. His starting salary will be $46,000. In 2022, the medical expenses are reduced by 7.5% of AGI. Assume that all of the information reported in 2021 will be the same in 2022 unless other information has been presented above. Use the 2022 Tax Rate Schedule found in Appendix A of the textbook. Based on this information, the Bryd's projected itemized deductions for 2022 would be and the related tax liability for 2022 would be ( taxable income would be Single-Schedule X If taxable 2021 Tax Rate Schedules Head of household-Schedule Z of the If taxable of the income is: Over- But not over- amount income is: The tax is: over- Over- But not over- amount The tax is: over- $ 0 $ 9,950 .........10% $ 0 $ 0 $14,200 .........10% $ 0 9,950 40,525 40,525 86,375 $ 995.00 + 12% 9,950 14,200 54,200 $ 1,420.00+12% 14,200 4,664.00 + 22% 40,525 54,200 86,350 6,220.00 +22% 54,200 86,375 164,925 14,751.00 + 24% 86,375 86,350 164,900 13,293.00+24% 86,350 164,925 209,425 33,603.00+32% 164,925 164,900 209,400 32,145.00+32% 164,900 209,425 523,600 47,843.00+35% 209,425 209,400 523,600 46,385.00+35% 209,400 523,600 157,804.25 + 37% 523,600 523,600 156,355.00+37% 523,600 Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable income is: Over- $ 0 But not over- $ 19,900 of the amount If taxable The tax is: over- income is: Over- But not over- The tax is: of the amount over- .........10% $ 0 $ 0 $ 9,950 .........10% $ 0 19,900 81,050 $ 1,990.00+12% 19,900 9,950 40,525 $ 995.00+12% 9,950 81,050 172,750 9,328.00 +22% 81,050 40,525 86,375 4,664.00 +22% 40,525 172,750 329,850 29,502.00 +24% 172,750 86,375 164,925 14,751.00 +24% 86,375 329,850 418,850 67,206.00 + 32% 329,850 164,925 209,425 33,603.00 32% 164,925 418,850 628,300 95,686.00 + 35% 418,850 209,425 314,150 47,843.00 +35% 209,425 628,300 168,993.50 + 37% 628,300 314,150 84,496.75 + 37% 314,150