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In 2017, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to
file separate tax returns, Jasmine would have reported taxable income of $140,000 and Thomas
would have reported taxable income of $10,000. Use Tax Rate Schedule for reference.
What is the couple’s marriage penalty or benefit? (Do not round intermediate calculations.
Round your answer to 2 decimal places. Input the amount as positive value.)
Solution
Answer
Married Couple
Taxable Income
Tax if jointly filed
Tax if single
Jasmine
140,000
32,181.75
Thomas
10,000
1,033.75
Jointly
150,000
28,977.50
33,215.50
Tax on Jointly Filed = $10452.5 + 25%* (150000-75900)
= 28,977.50
Tax if filed separately
Jasmine = $18713.75 + 28%* (140000-91900)
= $32,181.75
Thomas = $932.5 + 15%* (10000-9325)
= $1,033.75
Marriage benefit = $4,238 (33,215.50 - 28,977.50)
Married Couple
Taxable Income
Tax if jointly filed
Tax if single
Jasmine
140,000
32,181.75
Thomas
10,000
1,033.75
Jointly
150,000
28,977.50
33,215.50

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In 2017, Jasmine and Thomas, a married couple, had taxable income of.pdf

  • 1. In 2017, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to file separate tax returns, Jasmine would have reported taxable income of $140,000 and Thomas would have reported taxable income of $10,000. Use Tax Rate Schedule for reference. What is the couple’s marriage penalty or benefit? (Do not round intermediate calculations. Round your answer to 2 decimal places. Input the amount as positive value.) Solution Answer Married Couple Taxable Income Tax if jointly filed Tax if single Jasmine 140,000 32,181.75 Thomas 10,000 1,033.75 Jointly 150,000 28,977.50 33,215.50 Tax on Jointly Filed = $10452.5 + 25%* (150000-75900) = 28,977.50 Tax if filed separately Jasmine = $18713.75 + 28%* (140000-91900) = $32,181.75 Thomas = $932.5 + 15%* (10000-9325) = $1,033.75 Marriage benefit = $4,238 (33,215.50 - 28,977.50) Married Couple Taxable Income Tax if jointly filed