Matt and Meg Come
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $68,900. Meg works part time at the same university. She earns $44,100 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and
a. What is the Comers' tax liability for 2023 if they report the following capital gains and losses for the year?
| Short-term capital gains | $ 9,550 |
|---|---|
| Short-term capital losses | (2,550) |
| Long-term capital gains | 15,200 |
| Long-term capital losses | (7,100) |
Income tax is compulsory for all taxpayers. However, incomes from different sources are taxed at different rates, it’s better to get familiar with all possible provisions to compute the right amount of tax.
Tax brackets 2023 (taxes due 2024)
Tax Rate | Single | Married filing jointly |
|---|---|---|
10% | $0 to $11,000. | $0 to $22,000. |
12% | $11,001 to $44,725. | $22,001 to $89,450. |
22% | $44,726 to $95,375. | $89,451 to $190,750. |
Capital gains tax rates for 2023
| Married filing jointly | |
|---|---|
| 0% | $0 to $89,250 |
| 15% | $89,251 to $553,850 |
| 20% | $553,851 or higher |
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