Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with this Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the
Please help with this
Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $125,000 from salary and wages (ordinary income). 2. $5,000 in interest income. 3. $2,000 in dividend income. 4. $3,000 in profit from sale of a stock they purchased two years ago. 5. $1,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2, E, to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.) c. How much will Mike and Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $1. (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $1. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $1. (Round to the nearest dollar.) d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $1. (Round to the nearest dollar.) - Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) TABLE 1.2: Tax Rates and Income Brackets for Joint Returns (2018) Taxable Income Joint Returns Tax Rates 10% $0 to $19,750 12% $19,751 to $80,250 $80,251 to $171,050 22% 24% $171,051 to $326,600 32% $326,601 to $414,700 35% $414,701 to $622,050 Over $622,050 37% Done PrintStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started