Question
Peters gross income is $80,000 a year, and Wendy earns $100,000 a year. They put $3,000 each into an IRA. They are a married couple
Peters gross income is $80,000 a year, and Wendy earns $100,000 a year. They put $3,000 each into an IRA. They are a married couple and have two children, so that they can have a child tax credit $2,000 per child. Peter and Wendy decided to file taxes jointly, and this year standard deduction for married taxpayers is $24,400.
a. How much is the gross income?
b. How much is the adjusted gross income (AGI)?
c. How much is the taxable income?
d. How much do they have to pay in taxes? (Total tax payment)
e. Suppose that the government withheld $16,000 from Peters earnings and $20,000 from Wendys. What is the final payment (refund) due?
Marginal tax rate if married, filling jointly 37 35 32 ||| 24 22 11 12 10 19,400 78,950 168,400 321,450 408,200 612,350 Taxable IncomeStep by Step Solution
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