Question

You meet that special person and get married! Amazingly, your spouse has EXACTLY the same income you do, $47,810.

If your tax status is now "married—filing jointly", what is your tax liability? Explain how you calculated this. (Remember, your income as a couple is double your individual income.

Answer 1

$17,123.78

Explanation:

Total taxable income is the combined income of the couple:

`Taxable \ Income =47810+47810\\\\=95620`

Tax rate applicable for a couple filling jointly is 24%.

Tax liability is calculated using the applicable 2020 Tax Brackets as below:

`Tax \ Liability = Tax \ Rate * \ Taxable \ Income\\\\\ \# 1^(st) \ 9700 \ at 10\%\\\\=10\% * 9700\\\\=970\\\\\#next \ 29771 \ at 12\%\\\\=12\%* 29771\\\\=3572.52\\\\\#next \ 44725 \ at 22\%\\\\=22\%* 44725\\\\=9839.50\\\\\#last \ 11424 \ at 24\%\\\\=24\%* 11424\\\\=2741.76\\\\Tax_(total)=970+3572.52+9839.50+2741.76=17123.78`

Hence, the total tax liability for the couple's joint filing is : $17,123.78