Matt and Meg Comer are marriedand file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,700. Meg works part time at the same university. She earns $33,700 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks).

What is the Comers' tax liability for 2020 if they report the following capital gains and losses for the year?

Short-term capital gains $9,700

Short-term capital losses (2,700)

Long-term capital gains 15,700

Long-term capital losses (6,700)

a.What is the Comers' tax liability for 2020 if they report the following capital gains and losses for the year?

2020 tax rate schdeule

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over: But not over: The tax is:

$0 $19,750 10% of taxable income

$19,750 $80,250 $1,975 plus 12% of the excess over $19,750

$80,250 $171,050 $9,235 plus 22% of the excess over $80,250

$171,050 $326,600 $29,211 plus 24% of the excess over $171,050

$326,600 $414,700 $66,543 plus 32% of the excess over $326,600

$414,700 $622,050 $94,735 plus 35% of the excess over $414,700

$622,050 $167,307.50 plus 37% of the excess over $622,050

tax rates for net capital gains and qualified dividends

Rate* Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates

0% $0 - $80,000 $0 - $40,000 $0 - $40,000 $0 - $53,600 $0 - $2,650

15% $80,001 - $496,600 $40,001 - $248,300 $40,001 - $441,450 $53,601 - $469,050 $2,651 --13,150

20% $496,601+ $248,301+ $441,451+ $469,051+ $13,151+