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A married couple earned $170,000 in one year from wages. They will file using the standard deduction and two personal exemptions. They contributed $4,000 to tax-exempt health savings accounts. They qualify for a $1,000 tax credit.

a. Find the couples gross income and adjusted gross income.

b. Find the couples taxable income.

c. Use the tax table on page 264 to find the federal income tax owed.

d. Find the FICA tax owed.

e. Find the couples overall tax rate.

(Please write in clean print with simple steps, thank you)

tax table

tany n me e TABLE 4.9 2017 Marginal Tax Rates, Standard Deductions, and Exemptions* Married Filing Married Filing Head of Jointly Single Separately Household Tax Rate 10% up to $9325 up to $18,650 up to $9325 up to $13,350 15% up to $37,950 up to $75,900 up to $37,950 up to $50,800 25% up to $91,900 up to $153,100 up to $76,550 up to $131,200 28% up to $191,650 up to $233,350 up to $116,675 up to $212,500 33% up to $416,700 up to $416,700 up to $208,350 up to $416,700 35% up to $418,400 up to $470,700 up to $235,350 up to $444,550 39.6% above $418,400 above $470,700 above $235,350 above $444,550 Standard $6350 $12,700 $6350 deduction $9350 Exemption $4050 $4050 (per person) $4050 $4050 tive minimum tax (AMT) that affects many middle- and high-income taxpayers; (iii) potential changes in tax law made after this text was printed that may have changed the values given in this table for 2017. This table ignores (1) exemption and deduction phase-outs that apply to high-income taxpayers; (ii) the alterna marginal rate affects income starting at $9325, which is where the 10% rate leaves off, and continuing up to Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the 15% $37.950