Problem 1-6 The Tax Formula for Individuals, Filing Status and Tax Computation (LO 1.3, 1.5, 1.7)

Ulysses and Penelope are married and file separate returns for 2018. Penelope itemizes her deductions on her return. Ulysses' adjusted gross income was $17,400, his itemized deductions were $2,250 and he is entitled to one exemption. Neither have any dependents.

Table for the standard deduction

Filing Status	2018 Standard Deduction
Single	$ 12,000
Married, filing jointly	24,000
Married, filing separately	12,000
Head of household	18,000
Qualifying widow(er)	24,000

Click here to access the tax tables.

Calculate Ulysses' income tax liability assuming the couple does not live in a community property state. $ _____