Mr. and Mrs. Lays taxable income is $682,400, which includes a $22,370 dividend on their investment in Rexford Mutual Fund. Mr. and Mrs. Lays marginal rate on ordinary income is 37 percent, and their entire Rexford dividend is subject to the Medicare contribution tax. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends.

Required:

1. Compute the Lays' total tax on this dividend if their Form 1099 from Rexford reported that the entire $22,370 was an ordinary dividend.
2. Compute the Lays' total tax on this dividend if their Form 1099 from Rexford reported that $17,940 was an ordinary dividend and $4,430 was a capital gain distribution.
3. Compute the Lays' total tax on this dividend if their Form 1099 from Rexford reported that $7,350 was an ordinary dividend, $10,960 was a qualified dividend distribution, and $4,060 was a capital gain distribution.

Extra info to help

Individual Tax Rate Schedules

Married Filing Jointly and Surviving Spouse

If taxable income is	The tax is
Not over $19,900	10% of taxable income
Over $19,900 but not over $81,050	$1,990.00 + 12% of excess over $19,900
Over $81,050 but not over $172,750	$9,328.00 + 22% of excess over $81,050
Over $172,750 but not over $329,850	$29,502.00 + 24% of excess over $172,750
Over $329,850 but not over $418,850	$67,206.00 + 32% of excess over $329,850
Over $418,850 but not over $628,300	$95,686.00 + 35% of excess over $418,850
Over $628,300	$168,993.50 + 37% of excess over $628,300

Married Filing Separately

If taxable income is	The tax is
Not over $9,950	10% of taxable income
Over $9,950 but not over $40,525	$995.00 + 12% of excess over $9,950
Over $40,525 but not over $86,375	$4,664.00 + 22% of excess over $40,525
Over $86,375 but not over $164,925	$14,751.00 + 24% of excess over $86,375
Over $164,925 but not over $209,425	$33,603.00 + 32% of excess over $164,925
Over $209,425 but not over $314,150	$47,843.00 + 35% of excess over $209,425
Over $314,150	$84,496.75 + 37% of excess over $314,150

Head of Household

If taxable income is	The tax is
Not over $14,200	10% of taxable income
Over $14,200 but not over $54,200	$1,420.00 + 12% of excess over $14,200
Over $54,200 but not over $86,350	$6,220.00 + 22% of excess over $54,200
Over $86,350 but not over $164,900	$13,293.00 + 24% of excess over $86,350
Over $164,900 but not over $209,400	$32,145.00 + 32% of excess over $164,900
Over $209,400 but not over $523,600	$46,385.00 + 35% of excess over $209,400
Over $523,600	$156,355.00 + 37% of excess over $523,600

Single

If taxable income is	The tax is
Not over $9,950	10% of taxable income
Over $9,950 but not over $40,525	$995.00 + 12% of excess over $9,950
Over $40,525 but not over $86,375	$4,664.00 + 22% of excess over $40,525
Over $86,375 but not over $164,925	$14,751.00 + 24% of excess over $86,375
Over $164,925 but not over $209,450	$33,603.00 + 32% of excess over $164,925
Over $209,450 but not over $523,600	$47,843.00 + 35% of excess over $209,425
Over $523,600	$157,804.25 + 37% of excess over $523,600

Tax rates for capital gains and qualified dividends

Rate	Married Filing Jointly	Married Filing Separately	Single	Head of Household
0%*	$0-$80,800	$0-$40,400	$0-$40,400	$0-$54,100
15%**	$80,801-$501,600	$40,401-$250,800	$40,401-$445,850	$54,101-$473,750
20%	$501,601+	$250,801+	$445,851+	$473,751+

* The highest income amount in this range for each filing status is referred to as maximum zero rate amount.

** The highest income amount in this range for each filing status is referred to as maximum 15-percent amount