Question

Toby and Nancy are engaged and plan to get married. During 2017, Toby is a full-time student and earns $8,500 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Nancy is employed and reports $65,000 in wages. The personal exemption amount for 2017 is $4,050. Click here to access the standard deduction table to use. 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:

	Toby Filing Singl	Nancy Filing Single
Gross income and AGI	$	$
Standard deduction	$	$
Personal Exemption	$	$
Taxable Income	$	$
Income Tax	$	$

b. Assume that Toby and Nancy get married in 2017 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	$
Personal Exemptions	$
Taxable Income	$
Income Tax	$

c. How much Federal income tax can Toby and Nancy save if they get married in 2017 and file a joint return? $

Answer 1

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highlighted in yellow: Sign of amount can be +/-per question: As per Tax rules 2017: Answers are Solution: a) Toby Filing Single $ 8,500 $6,350 $4,050 Nancy Filing Single $ Gross income and AGI 65,000 Standard deduction 6,350 Personal Exemption $ 4,050 $ Taxable Income 54,600 (5226.25)+(56400-37950) 25% $ $ Income Tax 9,839 Married filing jointly $ 73,500 b) (8500+65000) Gross income Standard deduction 12,700 $ 8,100 52,700 $6,973 Personal Exemption Taxable Income (1865)+(52700-18650)"15% Income Tax $ 2,866 c) Saving if filing jointly: (9839-6973)