Question

Consider the following couple, who are engaged to be married. Assume that each person takes one exemption and the standard deduction. Answer the questions below using the tax rates in the table to the right. Mia and Steve each have an adjusted gross income of $186,000. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption Single up to $9325 up to $37.950 up to $91,900 up to $191,650 up to $410.700 up to $418,400 above $418,400 $6350 Married Filing Jointly up to 518,650 up to $75,800 up to $153,100 up to $233,350 up to $416.700 up to $470,700 above 5470,700 $12,700 $4050 54050 per person) Calculate their income tax if they delay their marriage until next year so they can file their tax returns as individuals at the single tax rate this year. Their income tax would be $ (Round to the nearest dollar as needed.)

Answer 1

Calculation of single tax payable by both Mia and Steve:

Since they delay their marriage until next year, they can file their tax returns as individuals at the single tax rate.

Particulars	Mia	Steve
Gross income	186,000	186,000
(-) Standard deduction	6,350	6,350
(-) Exemption	4050	4,050
Taxable Income	175,600	175,600
Calculation of tax payable:
Upto 9,325 - 10% (9325*10%)	932.5	932.5
Upto 37,950- 15% (37950-9325)*15%	4293.75	4293.75
Upto 91,900 - 25% (91900-37950)*25%	13487.5	13487.5
Upto 191,650 - 28% (175,600-91900)*28%	234,36	234,36
Tax payable	42149.75	42149.75