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Problem 3-39 (Algorithmic) (LO. 5, 6, 9) Preston and Anna are engaged and plan to get married. During 2020, Preston is a full-time student
Problem 3-39 (Algorithmic) (LO. 5, 6, 9) Preston and Anna are engaged and plan to get married. During 2020, Preston is a full-time student and earns $7,600 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Anna is employed and has wages of $72,600. Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar. a. Compute the following: Gross income and AGI Standard deduction Taxable income Income tax Feedback Preston Anna Filing Single Filing Single 8,500 X 69,000 X 12,400 12,400 0 56,600 X 0 8,391.5 X Check My Work If married individuals elect to file separate returns, each reports only his or her own income, exemptions, deductions, and credits, and each must use the Tax Rate Schedule applicable to married taxpayers filing separately. It is generally advantageous for married individuals to file a joint return, because the combined amount of tax is lower. b. Assume that Preston and Anna get married in 2020 and file a joint return. What is their taxable income and income tax? Round your final answer to nearest whole dollar. Gross income and AGI Standard deduction Taxable income Income tax Married Filing Jointly 77,100 X 24,000 X 53,100 X c. How much income tax can Preston and Anna save if they get married in 2020 and file a joint return? 0 x
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