Problem 11-55 (LO. 3, 8, 11) Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a communty property State) Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2021 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 2021. Click here to access the tax rate schedule. Round the total tax to the nearest dollar. di Jake should le jointly or separately for 2021 Click here to access the tax rate schedule. Round the total tax to the nearest dollar. Bonnie Jake Joint AGI 43,250 26,750 47,000 V Total itemized deductions 19,000 12,894 X 30,375 x Taxable income 24,250 13,856 X 16,625 X Tax 2,720 x 1,472 X 1,614 X Should Bonnie and Jake file jointly or separately for 2021? Jointly But not of the amount over 2021 Tax Rate Schedules Single-Schedule X If taxable Head of household-Schedule Z of the income is: If taxable amount income is: Over- over The tax is: But not Over Over- over The tax is: S 0 $ 9,950 ......... 10% $ 0 $ 0 $ 14,200 ......... 10% 9,950 40,525 $ 995.00 + 12% 9,950 14,200 54,200 $ 1,420.00+ 12% 40,525 86,375 4,664.00 + 22% 40,525 54,200 86,350 6,220.00 + 22% 86,375 164,925 14,751.00 +24% 86,375 86,350 164,900 13,293.00 +24% 164,925 209,425 33,603.00 + 32% 164,925 164,900 209,400 32,145.00+ 3296 209,425 523,600 47,843.00 + 35% 209,425 209,400 523,600 46,385.00+ 35% 523,600 157,804.25 + 37% 523,600 523,600 156,355.00 +37% Married filing jointly or Qualifying widow(er)- Married filing separately ---Schedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over- over- The tax is: over Over over The tax is: $ 0 $ 19,900 ......... 10% $ 0 $ 0 $ 9,950 19,900 81,050 $ 1,990.00 + 12% 19,900 9.950 40,525 $ 995.00+ 12% 81,050 172.750 9,328.00 + 22% 81,050 40,525 86,375 4,664.00+ 22% 172.750 329,850 29,502.00 +24% 172,750 86,375 14,751.00 + 24% 164.925 329,850 418,850 67,206,00 + 32% 329,850 164.925 33,603.00 + 32% 209,425 418,850 628,300 95,686.00 + 3596 418,850 209,425 314,150 47,843.00 + 35% 628,300 628,300 168,993.50 +37% 84,496.75 + 37% 314,150 $ 0 14,200 54,200 86,350 164,900 209,400 523,600 STEE of the amount over s 0 ...... 10% 9,950 40,525 86,375 164,925 209,425 314,150
