Barry and Michelle plan to marry in December 2021. Barry's salary is $60,000 and he owns his residence. His itemized deductions total $18,550 ($6,100 of which are charitable contributions). Michelle's salary is $95,000. Her itemized deductions total only $11,000 (none of which are charitable contributions) as she does not own her residence. (Click the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the 2021 tax rate schedule for the Single filing status.) Read the requirements. Requirement a What will their 2021 tox be if they morn C o joint return?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Barry and Michelle plan to marry in December 2021. Barry's salary is $60,000 and he owns his residence. His itemized deductions total $18,550 ($6,100 of which are
charitable contributions). Michelle's salary is $95,000. Her itemized deductions total only $11,000 (none of which are charitable contributions) as she does not own her residence.
(Click the icon to view the standard deduction amounts.)
(Click the icon to view the 2021 tax rate schedule for the Married filing jointly filing status.)
(Click the icon to view the 2021 tax rate schedule for the Single filing status.)
Read the requirements.
Requirement a. What will their 2021 tax be if they marry before year-end and file a joint return?
Taxable income
Transcribed Image Text:Barry and Michelle plan to marry in December 2021. Barry's salary is $60,000 and he owns his residence. His itemized deductions total $18,550 ($6,100 of which are charitable contributions). Michelle's salary is $95,000. Her itemized deductions total only $11,000 (none of which are charitable contributions) as she does not own her residence. (Click the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Married filing jointly filing status.) (Click the icon to view the 2021 tax rate schedule for the Single filing status.) Read the requirements. Requirement a. What will their 2021 tax be if they marry before year-end and file a joint return? Taxable income
Homework: Chapter 2 Homework
Question list
O Question 1
O Question 2
O Question 3
Reference
K
Barry and Michelle plan to marry in
charitable contributions). Michelle's s
(Click the icon to view the stand
(Click the icon to view the 2021
(Click the icon to view the 2021
Read the requirements.
If taxable income is:
Not over $19,900
Over $19,900 but not over $81,050
Over $81,050 but not over $172,750
Over $172,750 but not over $329,850
Over $329,850 but not over $418,850
Over $418,850 but not over $628,300
Over $628,300
Requirement a. What will their 2021
Reference
Married individuals filing joint returns and surviving spouses
Heads of households
Unmarried individuals (other than surviving spouses and heads of households)
Married individuals filing separate returns
Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses
Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse
Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100.
*These amounts are $2,700 and $3,400, respectively, for a taxpayer who is both aged and blind.
*
Married, Filing Joint and Surviving Spouse
The tax is:
10% of taxable income.
. $1,990.00 + 12% of the excess over $19,900.
... $9,328.00 + 22% of the excess over $81,050.
. . $29,502.00 +24% of the excess over $172,750.
. $67,206.00 + 32% of the excess over $329,850.
.. $95,686.00+ 35% of the excess over $418,850.
$168,993.50 +37% of the excess over $628,300.
STANDARD DEDUCTION
Filing Status
Reference
If taxable income is:
Not over $9,950
Over $9,950 but not over $40,525
Over $40,525 but not over $86,375
Over $86,375 but not over $164,925
Over $164,925 but not over $209,425
Over $209,425 but not over $523,600
Over $523,600
$
$
$
$
I
25,100
18,800
12,550
12,550
$1,350*
$1,700*
Single
The tax is:
10% of taxable income.
$995.00 +12% of the excess over $9,950.
$4,664.00 + 22% of the excess over $40,525.
$14,751.00 +24% of the excess over $86,375.
. $33,603.00 + 32% of the excess over $164,925.
.. $47,843.00 + 35% of the excess over $209,425.
$157,804.25 +37% of the excess over $523,600.
Transcribed Image Text:Homework: Chapter 2 Homework Question list O Question 1 O Question 2 O Question 3 Reference K Barry and Michelle plan to marry in charitable contributions). Michelle's s (Click the icon to view the stand (Click the icon to view the 2021 (Click the icon to view the 2021 Read the requirements. If taxable income is: Not over $19,900 Over $19,900 but not over $81,050 Over $81,050 but not over $172,750 Over $172,750 but not over $329,850 Over $329,850 but not over $418,850 Over $418,850 but not over $628,300 Over $628,300 Requirement a. What will their 2021 Reference Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. *These amounts are $2,700 and $3,400, respectively, for a taxpayer who is both aged and blind. * Married, Filing Joint and Surviving Spouse The tax is: 10% of taxable income. . $1,990.00 + 12% of the excess over $19,900. ... $9,328.00 + 22% of the excess over $81,050. . . $29,502.00 +24% of the excess over $172,750. . $67,206.00 + 32% of the excess over $329,850. .. $95,686.00+ 35% of the excess over $418,850. $168,993.50 +37% of the excess over $628,300. STANDARD DEDUCTION Filing Status Reference If taxable income is: Not over $9,950 Over $9,950 but not over $40,525 Over $40,525 but not over $86,375 Over $86,375 but not over $164,925 Over $164,925 but not over $209,425 Over $209,425 but not over $523,600 Over $523,600 $ $ $ $ I 25,100 18,800 12,550 12,550 $1,350* $1,700* Single The tax is: 10% of taxable income. $995.00 +12% of the excess over $9,950. $4,664.00 + 22% of the excess over $40,525. $14,751.00 +24% of the excess over $86,375. . $33,603.00 + 32% of the excess over $164,925. .. $47,843.00 + 35% of the excess over $209,425. $157,804.25 +37% of the excess over $523,600.
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