Question

Problem 3-46 (Algorithmic) (LO. 5, 6,9) Preston and Anna are engaged and plan to get married. During 2017, Preston is a full-time student and earns $6,700 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Anna is employed and reports $74,600 in wages. The personal exemption amount for 2017 is $4,050. 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: Preston Filing Single Anna Filing Single Gross income and AGI 6,700 74,600 Standard deduction 6,350 6,350 Personal exemption 4,050 4,050 Taxable income 64,200 Income tax 7,870

Answer 1

Sollution +) Tax to be paid = ( 9325 X 10 %) + (37950-9325] x 15%) + [( 612– 21460] 435 - 9325 + 4293.75 + 656205 11789 b) Gross Income = 8700 + 74600 = 81300 Standard deduction for Married filing Jointly in 2017 = 12700 Personal exemption per person = 4050 Income tax to be paid = [18650X10%.]+[ 60500-18650) X15% - 1865 + 6278 8143 c) tax saved when filing as married Tointly § 11789 - 8143 = 3646