Question

Raphael and Martina

Required: Raphael and Martina are engaged and are planning to travel to Las Vegas during the 2019 Christmas season and get married around the end of the year. In 2019. Raphael expects to earn $45,000 and Martina expects to earn $15,000. Their employers have deducted the appropriate amount of withholding from their paychecks throughout the year. Neither Raphael nor Martina has any itemized deductions. They are trying to decide whether they should get married on December 31, 2019, or on January 1, 2020. What do you recommend? Use the appropriate Tax Tables. Collective tax liability in 2019 If Raphael and Martina get married in 2019 If Raphael and Martina get married in 2020 Recommendation Thus, for tax purposes, it makes more sense for Raphael and Martina to get married in 2019

Answer 1

Answer:

Calculation of Tax Liability if they get married on Dec 31, 2019 Jointly:

Income (Jointly)	60,000
Standard Deduction	- 24,400
Taxable Income	35,600
It will be Taxed at 10% for the First $ 19,400	1,940
And Remaining (35,600 - 19,400) at 12%	1,944
Tax Liability	3,884

Total Tax Liability if they get married on Dec 31, 2019 = $ 3,884

We have to compare their individual taxable Liability Against Married Filling Jointly :

Raphael :

Income	45,000
Standard Deduction	- 12,200
Taxable Income	32,800
It will be Taxed at 10% for the First $ 19,400	970
And Remaining (35,600 - 19,400) at 12%	2,772
Tax Liability	3,742

Martina :

Income	15,000
Standard Deduction	- 12,200
Taxable Income	2,800
It will be Taxed at 10%	280

Total Tax Liability if then Married January 2020 = $ 280 + $ 3,742 = $ 4,022

Difference = $ 4,022 - $ 3,884 = $ 138

Recommendation : They Should get married on Dec 31, 2019 to Save $ 138