Question

Determine the tax liability for tax year 2019 in each of the following instances. In each case, assume the taxpayer can take only the standard deduction.

Use the appropriate Tax Tables and Tax Rate Schedules.

1. A single taxpayer, not head of household, with AGI of $23,493 and one dependent.
2. A single taxpayer, not head of household, with AGI of $169,783 and no dependents. (Round your intermediate computations to 2 decimal places and final answer to the nearest dollar amount.)
3. A married couple filing jointly with AGI of $39,945 and two dependents.
4. A married couple filing jointly with AGI of $162,288 and three dependents. (Round your intermediate computations to 2 decimal places and final answer to the nearest dollar amount.)
5. A married couple filing jointly with AGI of $301,947 and one dependent. (Round your intermediate computations to 2 decimal places and final answer to the nearest dollar amount.)
6. A taxpayer filing married filing separately with AGI of $68,996 and one dependent.
7. A qualifying widow, age 66, with AGI of $49,240 and one dependent.
8. A head of household with AGI of $14,392 and two dependents.
9. A head of household with AGI of $59,226 and one dependent.

(For all requirements, use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000.)

Tax liability a.

b.

c.

d.

e.

f.

g.

h.

i.

Answer 1

(a) -- A single taxpayer, not head of household, with AGI of $23493 and one dependent.

Answer -

Computation of Tax Liability for Tax Year 2019

Taxable Income = AGI - Standard Deduction = ($23493 - $12200) = $11293.

	Tax Rate	Taxable Income ($)	Calculation	Amount ($)
I.	10%	0 - 9700	$9700 * 10%	970
II.	12%	9701 - 39475	($11293 - $9701) * 12%	191.04
Tax Liability for Tax Year 2019			I + II	1161
Less : Child Tax Credit			$2000 per dependent	(2000)
Refund for Tax Year 2019			$1161 - $2000	(839)

.

(b) -- A single taxpayer, not head of household, with AGI of $169783 and no dependents.

Answer -

Computation of Tax Liability for Tax Year 2019

Taxable Income = AGI - Standard Deduction = ($169783 - $12200) = $157583.

	Tax Rate	Taxable Income ($)	Calculation	Amount ($)
I.	10%	0 - 9700	$9700 * 10%	970
II.	12%	9701 - 39475	($39475 - $9700) * 12%	3573
III.	22%	39476 - 84200	($84200 - $39475) * 22%	9839.5
IV.	24%	84201 - 160725	($157583 - $84200) * 24%	17611.92
Tax Liability for Tax Year 2019			I + II + III + IV	31994

.

(c) -- A married couple filing jointly with AGI of $39945 and two dependents.

Answer -

Computation of Tax Liability for Tax Year 2019

Taxable Income = AGI - Standard Deduction = ($39945 - $24400) = $15545.

	Tax Rate	Taxable Income ($)	Calculation	Amount ($)
I.	10%	0 - 19400	$15545 * 10%	1555
Tax Liability for Tax Year 2019			-	1555
Less : Child Tax Credit			$2000 per dependent = $2000 * 2	(4000)
Refund for Tax Year 2019			$1555 - $4000	(2445)

.

(d) -- A married couple filing jointly with AGI of $162288 and three dependents.

Answer -

Computation of Tax Liability for Tax Year 2019

Taxable Income = AGI - Standard Deduction = ($162288 - $24400) = $137888.

	Tax Rate	Taxable Income ($)	Calculation	Amount ($)
I.	10%	0 - 19400	$19400 * 10%	1940
II.	12%	19401 - 78950	($78950 - $19400) * 12%	7146
III.	22%	78951 - 168400	($137888 - $78950) * 22%	12966
Total			I + II + III	22052
Less : Child Tax Credit			$2000 per dependent = $2000 * 3	(6000)
Tax Liability for Tax Year 2019			$22052 - $6000	16052