Question

Charles and Joan Thompson file a joint return. In 2018, they had taxable income of $92,370 and paid tax of $12,202. Charles is an advertising executive, and Joan is a college professor. During the fall 2019 semester, Joan is planning to take a leave of absence without pay. The Thompsons expect their taxable income to drop to $70,000 in 2019. They expect their 2019 tax liability will be $8,015, which will be the approximate amount of their withholding. Joan anticipates that she will work on academic research during the fall semester. During September, Joan decides to perform consulting services for some local businesses. Charles and Joan had not anticipated this development. Joan is paid a total of $35,000 during October, November, and December for her work. Use the appropriate Tax Rate Schedules. Required: a. What estimated tax payments are Charles and Joan required to make, if any, for tax year 2019?

Answer 1

chartes and soan chompson file a joint return which helps them in paying lessed fax than they would have Daid individually. The 2019 Income Tax Brackets for the us are as shown below Rate individuals Masoned filling Jointly or up to $9.700 up to $19.400 7. $9,701 to $39,475 $1914ol to $78,950 227 $39,476 to $84,200 $28,951 to $168 400 247 $84,201 to $160,725 $168401 to $321 Uso 32. $160726 to $204100 $3,21451 to $4081200 35% $204101 to $510300 $408201 to $ 6,12,350 37% over $5, 10, 301 over & 612,351 Source: https://www.forbes.com/ the table below inustrates the 208 Par brackets Godognozluq DE COCXAT Rate Individuals 10. up to $9.525 . $9.526 to $38.700 2. $38.701 to $82.500 244 $82, sol to $57500 327 $152 sol to $200.000 Massed filing sointly up to $igioso $19.051 to $77, 400 $27.601 to $16000 & 165.001 to $3 15000 $315ood to $40000 $ 6oo col to $600000 357 $20000d tot soo ooo over $6oo 37% over $500,000

we know from the Question that chooless and Joan Thompson had a Tatable income of $92.370 Hence the four they were supposed to pay's: $92,370 x 24% = $22,168.8 They have paid the full dues for 2018. for the year 2019, the total taxable income for the family is $ los,ooo. Hence the text that has to paid = ar. of $ & YTJA1139 Ecco SAM BIOS 3 AGSL2 E-EITTMC 2002 in Calos co volumo

we know from the Question that chooless and Joan Thompson had a Tatable income of $92.370 Hence the four they were supposed to pay's: $92,370 x 24% = $22,168.8 They have paid the full dues for 2018. for the year 2019, the total taxable income for the family is $ los,ooo. Hence the text that has to paid = ar. of $ & YTJA1139 Ecco SAM BIOS 3 AGSL2 E-EITTMC 2002 in Calos co volumo