Question

"Julian and Georgia file a joint return. They have adjusted gross income of $112,000 and itemized deductions of $25,000. Are they required to use the Tax Rate Schedules or the Tax Tables in computing their income tax?"

2020 Tax Rates and Amounts Tax Rate Schedules for 2020 + % on Excess 10% 12 Schedule X: Single Individuals Taxable income Over But Not Over $0 $9,875 9,875 40,125 40,125 85,525 85,525 163,300 163,300 207,350 207,350 518,400 518,400 Pay $0.00 987.50 4,617.50 14,605.50 33,21750 47,367.50 156,235 22 24 32 of the amount over $0 9.875 40,125 85,525 163,300 207350 518,400 35 37 + SCHEDULE Y-1: Married Filing Jointly and Surviving Spouses Taxable income Over But Not Over Pay $0 $19,750 $0.00 19,750 80,250 1,975 80,250 171,050 9,235 171,050 326,600 29,211 326,600 414,700 66,543 414,700 622.,050 94,735 622,050 167,307.50 % on Excess 10% 12 22 24 32 35 37 of the amount over $0 19,750 80,250 171,050 326,600 414,700 622,050 SCHEDULE Y-2: Married Individuals Filing Separately Taxable income Over But Not Over Pay $0 $9,875 $0.00 9.875 40,125 987.50 40,125 85,525 4,617.50 85,525 163,300 14,605.50 163,300 207,350 33,271.50 207,350 311,025 47,367.50 311,025 83,653.75 % on Excess 10% 12 22 of the amount over $0 9,875 24 32 35 37 40,125 85,525 163,300 207,350 311,025 SCHEDULE Z: Heads of Households Taxable income Over But Not Over $0 $14,100 14,100 53,700 53,700 85,500 85,500 163,300 163,300 207,350 207,350 518,400 518,400 % on Excess 10% 12 22 Pay $0.00 1,410 6,162 13,158 31,830 45,926 154,793.50 of the amount over $0 14,100 53,700 85,500 24 32 163,300 207,350 35 37 518,400

Answer 1

Yes, they are required to use the Tax Rate Schedules in computing the income tax. In case they are married and filing jointly then they must use tax rates as per Schedule Y-1.

Adjusted Gross Income	$112,000
Total Deductions	$25,000
Total Exemptions	$0
Taxable Income	$87,000
Regular Taxes	$10,720

Tax calculation = 9,235 + 22% * (87,000 - 80,250)