In 2017 Jasmine and Thomas a married couple had taxable inco

In 2017, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to file separate tax returns, Jasmine would have reported taxable income of $140,000 and Thomas would have reported taxable income of $10,000. Use Tax Rate Schedule for reference.

What is the couple’s marriage penalty or benefit? (Do not round intermediate calculations. Round your answer to 2 decimal places. Input the amount as positive value.)

Solution

Answer

Married Couple

Taxable Income

Tax if jointly filed

Tax if single

Jasmine

                 140,000

     32,181.75

Thomas

                   10,000

       1,033.75

Jointly

                 150,000

                 28,977.50

     33,215.50

Tax on Jointly Filed = $10452.5 + 25%* (150000-75900)

= 28,977.50

Tax if filed separately

Jasmine = $18713.75 + 28%* (140000-91900)

= $32,181.75

Thomas = $932.5 + 15%* (10000-9325)

= $1,033.75

Marriage benefit = $4,238 (33,215.50 - 28,977.50)