Question

Compute the 2019 tax due or refund due for each couple. Assume that any restrictions have been applied. Ignore the credits. Salary (earned by one spouse) Smiths = $30,000 Millers = $95,000 Taxable interest income Smiths = 20 Millers 1,000 Deductible IRA contribution Smiths = 0 Millers = 6,000 Itemized deductions Smiths = 900 Millers = 26,400 Withholding Smiths = 750 Millers = 8,500

Answer 1

ANSWER

Particulars	Smith($)	Millers($)
Salary earned by spouse	30000	95000
Interest income	20	1000
Gross income	30020	96000
Less: Deductible IRA contribution	0	6000
Adjusted gross income`	30020	90000
Less: itemized deductions	900	26400
Taxable income	29120	63600
Tax**	3178.40	7208
withholding	750	8500
Tax due/ Tax refund	2428.40 due	1292 refund

Tax:

for smiths= 0 to $19,400; 10% i.e. 1904

$19,401 to 78,950 ;12% i.e. (30020-19400)=10620 and; 1274.40

Total tax= 3178.40

For millens= 0 to $19,400; i.e. 1904

$19401 to 78,950 i.e.(63600-19400)=44200 and : 5304 (12%)

total tax= 7208

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