Question

Problem 3-39 (Algorithmic) (LO. 5, 6, 9)

Chris and Heather are engaged and plan to get married. Chris is a full-time student and earns $7,600 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 reports $88,000 in wages.

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 $ $ Standard deduction Taxable income $ $ Income tax $ $

b. Assume that Chris and Heather get married in 2019 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 $ Standard deduction Taxable income $ Income tax $

c. How much Federal income tax can Chris and Heather save if they get married in 2019 and file a joint return?
$

Answer 1

Part A

	Chris filing single	Heather filing single
Gross income and AGI	7600	88000
Standard deduction	(12200)	(12200)
Taxable income	0	75800
Income tax	$0	$12535 (4543+(22%*(75800-39475))

Part B

	Chris filing single
Gross income and AGI	95600
Standard deduction	(24400)
Taxable income	71200
Income tax	$8156 (1940+(12%*(71200-19400))

Part C

Chris and Heather can save $4379 (12535-8156) Federal income tax, if they get married in 2019 and file a joint return.