In 2017 Lisa and Fred a married couple had taxable income of

In 2017, Lisa and Fred, a married couple, had taxable income of $490,000. If they were to file separate tax returns, Lisa would have reported taxable income of $210,000 and Fred would have reported taxable income of $280,000. What is the couple’s marriage penalty or benefit?

Solution

Particulars

Lisa($)

Fred($)

Jointly($)

Income

210000

280000

490000

Standard deduction

(6300)

(6300)

(12600)

Dependent deduction

(4050)

(4050)

(8100)

Taxable amount

199650

269650

469300

Tax

49284

72384

121668

Jointly tax

131138

so according to table: if they file jointly they have to pay extra tax of $9470(131138-121668)

So if they are filing seperatly they will have benefit of $9470