For the following problem assume the taxable year is 2017 Ms

For the following problem, assume the taxable year is 2017. Ms. G earned a $91,250 salary, and Mr. H earned a $171,000 salary. Neither individual had any other income, and neither can itemize deductions a. Compute Ms. G and Mr. H\'s combined tax if they file as single individuals b. Compute Ms. G and Mr. H\'s tax if they are married and file a joint return

Solution

a $ Ms. G’s total income            91,250 Standard deduction             -6,350 Exemption amount             -4,050 Taxable income            80,850 Income tax on $80,850 (single)            15,951 {($80,850-$37950) x 25%} +$5,226.25=$15,951.25 $ Mr. H’s total income        1,71,000 Standard deduction             -6,350 Exemption amount             -4,050 Taxable income        1,60,600 Income tax on $160,600 (single)            37,950 ($160,600-$91,900) x 28%} + $18,713.75=$37,949.75 Ms. G and Mr. H’s combined tax is $53,901 b Ms. G and Mr. H’s total income        2,62,250 Standard deduction          -12,700 Exemption amount             -8,100 Taxable income        2,41,450 Income tax on $241,450 (married filing jointly)            54,896 {($241,450-$233,350) x 33%} + $52,222.50=$54,895.50