Question
Ordinary Income: Determine the taxpayers tax liability for 2020 for each of the scenarios: a. Sally is a single taxpayer and her taxable income is
Ordinary Income: Determine the taxpayers tax liability for 2020 for each of the scenarios:
a. Sally is a single taxpayer and her taxable income is $625,000. All of her income is salary from her employer (i.e., it is all ordinary income).
b. Henrich is married to Sally and their taxable income is $625,000. All of their income is salary from Sallys employer.
c. Assume that Henrich and Sally are in committed relationship, but not married at the end of 2020. They each have $312,500 of taxable income for the year, which is salary from their respective employers.
Show your work/Explain your answers.
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