In 2021, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to file separate tax returns, Jasminewould have reported taxable income of $140,000 and Thomas would have reported taxable income of $10,000. Use Tax RateSchedule for reference.What is the couple's marriage penalty or benefit? (Do not round intermediate calculations.) Schedule Y-2-Married Filing SeparatelyIf taxable income is over:But not over:The tax is:$ 0$ 9,950$ 40,525$ 86,375$ 164,925$ 209,425$ 314,150$ 9,950$ 40,525$ 86,375$ 164,925$ 209,425 $33,603 plus 32% of the excess over $164,925$ 314,15010% of taxable income$995 plus 12% of the excess over $ 9,950$4,664 plus 22% of the excess over $40,525$14,751 plus 24% of the excess over $86,375$47,843 plus 35% of the excess over $209,425$84,496.75 plus 37% of the excess over $314,150

In this question, we have to compute the tax.

Answered: In 2021, Jasmine and Thomas, a married…

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In 2021, Jasmine and Thomas, a married couple, had taxable would have reported taxable income of $140,000 and Thoma

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

In 2021, 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.)

Schedule Y-2-Married Filing Separately
If taxable income is over:But not over:
The tax is:
$ 0
$ 9,950
$ 40,525
$ 86,375
$ 164,925
$ 209,425
$ 314,150
$ 9,950
$ 40,525
$ 86,375
$ 164,925
$ 209,425 $33,603 plus 32% of the excess over $164,925
$ 314,150
10% of taxable income
$995 plus 12% of the excess over $ 9,950
$4,664 plus 22% of the excess over $40,525
$14,751 plus 24% of the excess over $86,375
$47,843 plus 35% of the excess over $209,425
$84,496.75 plus 37% of the excess over $314,150

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