Question

John and Lynn both of whom are under age 65, file a joint return reporting $140,000 of adjusted gross income for 2019 in this total is $15,000 of long-term capital gain and $55,000 of qualified dividend income. The couple uses the standard deduction. The couples income tax liability for 2019 is:

A) $17,149

B) $15,584

C) $10,611.50

D) $16,099

Answer 1

B) $15,584

AGI	$ 140,000
Standard deduction	$   24,400
Taxable Income	$ 115,600
Taxed at 15%(15000+55000) (a)	$   10,500
Taxed at Ordinary Rates (b)	$     5,084
Income Tax Liability (a)+(b)	$   15,584
Taxed at Ordinary Rates
115600-(15000+55000)	$   45,600
1940+(45600-19400)*12%	$     5,084