Rachel and Harry are planning to get married. Both have successful careers and expect to earn the following this year.
Rachel Harry
|
Salary
|
$155,380
|
|
$146,200
|
|
Interest income (taxable)
|
6,750
|
|
45,325
|
|
Long-term capital gain/(loss)
|
5,798
|
|
-
|
|
Total income
|
$167,928
|
|
$191,525
|
|
Itemized deductions
|
$28,763
|
|
$ 15,271
|
a. Use the PERSTAX program to calculate their total tax bill as single individuals and determine how much it will cost them in taxes to get married. Assume that getting married during a year subjects the entire year's income to the married filing jointly rate schedule. Assume there are no state taxes.
b. Duncan and Angela are also considering getting married but have considerably lower incomes as follows.
|
|
Duncan
|
Angela
|
|
Salary
|
$56,450
|
$37,829
|
|
Itemized deductions
|
6,048
|
3,224
|
What will it cost them to get married?