Chris and Heather are engaged and plan to get married. During 2020, Chris is a full-time student and earns $8,500 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Heather is employed and has wages of $83,600.
Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar.
a. Compute the following:
Chris Filing Single
Heather Filing Single
Gross income and AGI
8,500
83,600
Standard deduction
12,400
12,400
Taxable income
0
71,200
Income tax
0
11,454
b. Assume that Chris and Heather get married in 2020 and file a joint return. What is their taxable income and income tax? Round your final answer to nearest whole dollar.
Married Filing Jointly
Gross income and AGI
92,100
Standard deduction
24,800
Taxable income
67300
Income tax
???
c. How much income tax can Chris and Heather save if they get married in 2020 and file a joint return? $________
Transcribed Image Text:2020 Tax Rate Schedules
Single-Schedule X
If taxable
But not
income is:
Over-
of the
amount
over-
over-
The tax is:
$
0
$ 9,875
.........10%
9,875
40,125
$ 987.50 +12%
9,875
40,125
85,525
4,617.50 +22%
40,125
85,525
163,300
14,605.50 +24%
85,525
163,300
207,350
33,271.50 + 32%
163,300
207,350
518,400
47,367.50+ 35%
207,350
518,400
156,235.00 +37%
518,400
Married filing jointly or Qualifying widow(er)-
Schedule Y-1
If taxable
income is:
But not
of the
amount
over-
Over-
over-
The tax is:
$
0
$ 19,750
.........10%
0
19,750
80,250
$ 1,975.00 + 12%
19,750
80,250
171,050
9,235.00 +22%
80,250
171,050
326,600
29,211.00 +24%
171,050
326,600
414,700
66,543.00 +32%
326,600
414,700
622,050
94,735.00 + 35%
414,700
622,050
167,307.50 + 37%
622,050
$
$
Head of household-Schedule Z
If taxable
income is:
Over-
But not
over-
The tax is:
$
0
$ 14,100
.10%
14,100
53,700
$ 1,410.00 + 12%
53,700
85,500
6,162.00 +22%
85,500
163,300
13,158.00 +24%
163,300
207,350
31,830.00 + 32%
207,350
518,400
45,926.00 + 35%
518,400
154,793.50 + 37%
Married filing separately-Schedule Y-2
If taxable
But not
income is:
Over-
over-
The tax is:
$
0
$ 9,875
9,875
40,125
.........10%
987.50 +12%
4,617.50 +22%
40,125
85,525
85,525
163,300
14,605.50 +24%
163,300
207,350
33,271.50 + 32%
207,350
311,025
47,367.50 + 35%
311,025
83,653.75 + 37%
$
of the
amount
over-
$
0
14,100
53,700
85,500
163,300
207,350
518,400
of the
amount
over-
0
9,875
40,125
85,525
163,300
207,350
311,025
$
Transcribed Image Text:Standard Deduction
Single
Head of Household
Married Filing Jointly
Married filing Separately
Dependents (kiddie tax)
65 or Blind: Married
Single
Tax Year 2020
$12,400
$18,650
$24,800
$12,400
$1,100
Add $1,300
Add $1,650
Tax Year 2019
$12,200
$18,350
$24,400
$12,200
$1,100
Add $1,300
Add $1,650
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
by Bartleby Expert
