onnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2018 are as follows:

Bonnie's salary	$42,500
Jake's salary	26,000
Interest income (joint)	1,500
Rental loss from actively managed rental property	(23,000)
Jake's unreimbursed medical expenses	8,500
All other itemized deductions:*
Bonnie	19,000
Jake	6,400
*None subject to limitations

Determine whether Bonnie and Jake should file jointly or separately for 2018.

Click here to access the tax rate schedule.

If required, round your answers to the nearest dollar.

9,525 2018 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the If taxable of the income is: But not amount income is: But not amount Over- over- The tax is: over- Over- over- The tax is: over- $ 0 $ 9,525 .........10% $ 0 $ 0 $ 13,600 .........10% $ 0 9,525 38,700 $ 952.50 + 12% 13,600 51,800 $ 1,360.00 + 12% 13,600 38,700 82,500 4,453.50 + 22% 38,700 51,800 82,500 5,944.00 + 22% 51,800 82,500 157,500 14,089.50 + 24% 82,500 82,500 157,500 12,698.00 + 24% 82,500 157,500 200,000 32,089.50 + 32% 157,500 157,500 200,000 30,698.00 + 32% 157,500 200,000 500,000 45,689.50 + 35% 200,000 200,000 500,000 44,298.00 + 35% 200,000 500,000 150,689.50 + 37% 500,000 500,000 149,298.00 + 37% 500,000 Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable of the income is: But not amount income is: But not amount Over- over- The tax is: over Over- over- The tax is: over- $ 0 $ 19,050 ......... 10% 0 0 $ 9,525 ......... 10% $ 0 19,050 77,400 $ 1,905.00 + 12% 19,050 9,525 38,700 $ 952.50 + 12% 9,525 77,400 165,000 8,907.00 + 22% 77,400 38,700 82,500 4,453.50 + 22% 38,700 165,000 315,000 28,179.00 + 24% 165,000 82,500 157,500 14,089.50 +24% 82,500 315,000 400,000 64,179.00 + 32% 315,000 157,500 200,000 32,089.50 + 32 JL 57,500 400,000 600,000 91,379.00 + 35% 400,000 200,000 300,000 45,689.50 + 35% 200,000 600,000 161,379.00 + 37% 600,000 300,000 80,689.50 + 37% 300,000