Question

David and Ruby are engaged and plan to get married. During 2020, David is a full-time student and earns $9,400 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and has wages of $79,200. 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: David Filing Single Ruby Filing Single Gross income and AGI $ Standard deduction Taxable income $ Income tax b. Assume that David and Ruby get married in 2020 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 and AGI $ Standard deduction Taxable income Income tax C. How much income tax can David and Ruby save if they get married in 2020 and file a joint return?

Answer 1

a	David	Ruby
Gross income	9400	79200
Standard deduction	12400	12400
Taxable income	0	66800
Income tax	0	$    10,486.00
b	Joint
Gross income	88600
Standard deduction	24800
Taxable income	63800
Income tax	$       7,261.00
c. Saving in income tax	$       3,225.00

Workings:

Filing status	Joint
Particulars	Amount	Amount
Gross income:
Income	$          88,600
Gross income		$          88,600
For AGI deductions		$                   -
Adjusted gross income		$          88,600
Less:
Standard deduction	$          24,800
Itemized deduction	$                   -
Higher of the two	$          24,800	$         (24,800)
Personal exemptions		$                   -
Taxable income		$          63,800
Income tax liability		$       7,261.00
[ 1975 + ( 63800 - 19750 ) × 0.12 ]

Filing status	Single	David
Particulars	Amount	Amount
Gross income:
Income	$            9,400
Gross income		$            9,400
For AGI deductions		$                   -
Adjusted gross income		$            9,400
Less:
Standard deduction	$          12,400
Itemized deduction	$                   -
Higher of the two	$          12,400	$         (12,400)
Personal exemptions		$                   -
Taxable income		$                   -
Income tax liability		$                   -
[ 0 + ( 0 - 0 ) × 0 ]

Filing status	Single	Ruby
Particulars	Amount	Amount
Gross income:
Income	$          79,200
Gross income		$          79,200
For AGI deductions		$                   -
Adjusted gross income		$          79,200
Less:
Standard deduction	$          12,400
Itemized deduction	$                   -
Higher of the two	$          12,400	$         (12,400)
Personal exemptions		$                   -
Taxable income		$          66,800
Income tax liability		$    10,486.00
[ 4617.5 + ( 66800 - 40125 ) × 0.22 ]

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