Question

Gabriella and Roberto have adjusted gross incomes of $46,500 and $32,700, respectively. Assume that each person takes one exemption and the standard deduction. Answer parts (a) through (c) below. Married Filing Tax Rate Single Jointly 10% up to $8.925 up to $17.850 15% up to $36.250 up to $72,500 25% up to $87,850 up to $146.400 28% up to $183,250 up to $223,050 Standard $6100 $12.200 Deduction Exemptions (per $3900 $3900 person) a. Calculate the tax owed by the couple if they delay their marriage until next year so they can each file a tax return at the single tax rate this year. The couple owes $ (Simplify your answer. Round to the nearest dollar as needed.) b. Calculate the tax owed by the couple if they marry before the end of the year and file a joint return. The couple owes $ (Simplify your answer. Round to the nearest dollar as needed.) c. Does the couple face a "marriage penalty if they marry before the end of the year? O O No Yes

Answer 1

a)

	Gabriella	Roberto
Adjusted Income	$                  46,500	$             32,700
Less:
Standard Deduction	$                     6,100	$                6,100
Exemption	$                     3,900	$                3,900
Taxable Income	$                  36,500	$             22,700
Tax	$                     5,054	$                2,959
Total Tax Owed	$                     8,013
Calculation:
Up to $8925 @ 10%	$                  892.50
$8926 to $36250 @ 15%	$               4,098.75
$36251 to $36500 @ 25%	$                     62.50
	$                     5,054
Up to $8925 @ 10%		$             892.50
$8926 to $22700 @ 15%		$          2,066.25
		$                2,959

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b) If they file joint return

	Adjusted Income
Gabriella	$                  46,500
Roberto	$                  32,700
Total	$                  79,200
Less:
Standard Deduction	$12200
Exemption	$7800
Taxable Income	$                  59,200
Total Tax Owed	$                     7,988
Calculation:
Up to $17850 @ 10%	$               1,785.00
$17851 to $59200 @ 15%	$               6,202.50
	$                     7,988

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c)

No.

They will get some tax bonus if they marry before the end of the year.

ie: $8,013 less $7,988