Question

Required information [The following information applies to the questions displayed below.) Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $63,950. Meg works part- time at the same university. She earns $33,250 a year. The couple does not itemize deductions. Other than salary, the Comers' only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.) b. What is the Comers' tax liability for 2019 if they report the following capital gains and losses for the year? $ 1,500 Short-term capital gains Short-term capital losses Long-term capital gains Long-term capital losses 13,100 (10,050) Total tax liability

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Answer 1

	Matt's Salary	$                                     63,950.00
	Meg's Salary	$                                     33,250.00
	Net Short term Capital gain($1500-$0)	$                                       1,500.00
	Net Long Term Capital gain($13100-$10050)	$                                       3,050.00
	Annual Gross Income	$                                 1,01,750.00
	Less: Standard Deduction	$                                   -24,400.00
	Taxable Income($101750-$24400)	$                                     77,350.00
	Less: Income taxed at Preferential tax rate	$                                     -3,050.00
	Income Taxed at ordinary rate	$                                     74,300.00
	Income Tax Due=(($1940+12%*($74300-$19400))	$                                       8,528.00
	Long Term Liability=$3050*0%	$                                                    -
	Total Tax Liability	$                                       8,528.00
	Long Term Capital gains taxed 0% falls under bracket=	0-$78750
		Net Short term Capital gain	Net Long Term Capital Gain
	Long Term Capital gain		$                                                   13,100.00
	Short term capital gain	$                                       1,500.00
	Less: Short term capital loss	$                                                    -
	Less: Long Term Capital loss		$                                                  -10,050.00
	Net Short Term Capital gain/Net Long term capital gain	$                                       1,500.00	$                                                      3,050.00
	Ordinary Income Tax Rates applicable to ordinary income and Short term capital gains
	Tax Rate (Married Filing Jointly)	Marginal Tax Rate	Tax Owed
	0-19400	10%	10% of taxable Income
	19400-78950	12%	$1940+12%of income over $19400
	78950-168400	22%	$9086+22% of Income over $78950
	168400-321450	24%	$28765+24% of Income over $168400
	Long Term Capital Gains Tax rate
	Tax Rate	Married Filed Jointly
	0%	0-$78750
	15%	$78751-$488850
	20%	$488851+
	Standard Deduction for Married filed joint return for 2019	$                                     24,400.00