Question 1.:

T & S(under 65, good vision) are MFJ and have 2 qualifying children. They have the following:

Combined Salary $115,000

Withholding $17,000

Sold Stock A (12/15/21) $2,000

Bought Stock A (6/10/21) $500

Sold Stock B (12/15/21) $3,500

Bought Stock B (1/5/19) $5,500

Other Ded. For AGI $4,000

Itemized Ded.$10,000

Qualified Dividends$5,000

Bank Interest $2,000

What is the TP's amount due (refund)? Marginal Rate? Effective Rate?

Question 2:

T & S(under 65, good vision) are MFJ. They have the following: Combined Salary $225,000 Withholding $31,250 Sold Stock A (12/15/21) $3,000 Bought Stock A (6/10/21) $2,000 Sold Stock B (12/15/21) $4,500 Bought Stock B (1/5/17) $500 Other Ded. For AGI $1,000 Itemized Ded.$13,000 Gift $8,000 Municipal Interest $10,000 Corp Bond Interest $6,000 What is the TP's amount due (refund)? Marginal Rate? Effective Rate?

Tax Rate Schedule 2021 Single: If Taxable Income Is: The Tax Is: Not over $9,950 10% of the taxable income Over $9,950 but not over $40,525 $995 plus 12% of the excess over $9,950 Over $40,525 but not over $86,375 $4,664 plus 22% of the excess over $40,525 Over $86,375 but not over $164,925 $14,751 plus 24% of the excess over $86,375 Over $164,925 but not over $209,425 $33,603 plus 32% of the excess over $164,925 Over $209,425 but not over $523,600 $47,843 plus 35% of the excess over $209,425 Over $523,600 $157,804 plus 37% of the excess over $523,600

Married Filing Jointly or Qualifying Widow(er): If Taxable Income Is: The Tax Is: Not over $19,900 10% of taxable income Over $19,900 but not over $81,050 $1,990, plus 12% of the excess over $19,900 Over $81,050 but not over $172,750 $9,328, plus 22% of the excess over $81,050 Over $172,750 but not over $329,850 $29,502, plus 24% of the excess over $172,750 Over $329,850 but not over $418,850 $67,206, plus 32% of the excess over $329,850 Over $418,850 but not over $628,300 $95,686, plus 35% of the excess over $418,850 Over $628,300 $168,993, plus 37% of the excess over $628,300

Standard Deduction Single - $12,550 MFJ - $25,100 Additions for age and the blind Single - $1,750 MFJ - $1,400 Exemption Amount - $0 Individuals taxed at: Rate Single Taxable income MFJ Taxable Income 0% Up to $40,400 Up to $80,800 15% > $40,400 but < $445,850 > $80,800 but < $501,600 20% Over $445,850 Over $501,600