1. Tammy and Don are married. Life is great with six children, and other people are moving in left and right. First, Grandma Jane moves in. Jane is 67, and Don and Tammy provide more than half her support her total income is only $1,500. Then, Dons cousin, aspiring comedian, Ellis moves in (age 40). Because he is focusing on developing his career, and Tammy and Don are financially supportive. Ellis moved to California for the summer, where he was going to make it. However, in September, he moved back in with Tammy and Don. They did provide more than half of his financial support during the year. Finally, Tammy's sister, Addie (age 35), and her daughter (Tammy's niece), Jade (age 14), move in during April because life is so great in the West household. Addie had to quit her job in December of the previous calendar year to move in with the West family and had income of $5,000 during the year. All went toward her own support but was less than half of what she required for the year. Tammy and Don provided all of Jades financial support during the year.
   1. What filing status should Don and Tammy use?
   2. How many dependents will they claim on their tax return? Are they Qualifying Children or Qualifying Relatives?
   3. Assuming Dons and Tammy's incomes are the same (that is they each still make $170,000), what is their total tax?
   4. What is their marginal tax rate? Effective tax rate? Average tax rate?
   5. Compare their situation as single people in situations 1 and 2 above to their situation as a married couple in 3. Were they given a tax bonus or tax penalty when they married? Explain.

Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 995 plus 12% of the excess over $9.950 $ 40,525 S 86,375 $4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $164.925 S 209.425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 523,600 547,843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 S 81,050 51.990 plus 12% of the excess over $19,900 $ 81,050 S 172,750 $9,328 plus 22% of the excess over $81,050 $ 172.750 S 329,850 S29,502 plus 24% of the excess over $172.750 $ 329,850 S 418,850 567,206 plus 32% of the excess over $329,850 $ 418,850 S 628,300 $95.686 plus 35% of the excess over $418.850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 14,200 10% of taxable income $ 14,200 S 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 S 86,350 $6.220 plus 22% of the excess over $54,200 $ 86,350 S 164,900 $13,293 plus 24% of the excess over $86,350 $ 164,900 $ 209,400 $32.145 plus 32% of the excess over $164.900 $ 209,400 S 523,600 S46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523.600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 S 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the exce xcess over $ 9.950 $ 40,525 S 86,375 $4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $164.925 $ 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 314,150 $47.843 plus 35% of the excess over $209,425 $ 314,150 $84.496.75 plus 37% of the excess over $314.150 Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 995 plus 12% of the excess over $9.950 $ 40,525 S 86,375 $4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $164.925 S 209.425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 523,600 547,843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 S 81,050 51.990 plus 12% of the excess over $19,900 $ 81,050 S 172,750 $9,328 plus 22% of the excess over $81,050 $ 172.750 S 329,850 S29,502 plus 24% of the excess over $172.750 $ 329,850 S 418,850 567,206 plus 32% of the excess over $329,850 $ 418,850 S 628,300 $95.686 plus 35% of the excess over $418.850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 14,200 10% of taxable income $ 14,200 S 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 S 86,350 $6.220 plus 22% of the excess over $54,200 $ 86,350 S 164,900 $13,293 plus 24% of the excess over $86,350 $ 164,900 $ 209,400 $32.145 plus 32% of the excess over $164.900 $ 209,400 S 523,600 S46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523.600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 S 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the exce xcess over $ 9.950 $ 40,525 S 86,375 $4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $164.925 $ 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 314,150 $47.843 plus 35% of the excess over $209,425 $ 314,150 $84.496.75 plus 37% of the excess over $314.150