Andy and Sally are married and under 50. They have no dependents. Sally’s salary
ID: 2529884 • Letter: A
Question
Andy and Sally are married and under 50. They have no dependents.
Sally’s salary (Federal withholding $3,000) 60,000
Andy’s salary (Federal withholding $3,000) 45,000
City of Dallas bonds 1,500
Chase Bank Interest 3,000
GM bonds 5,000
Take a standard deduction, deduct their personal exemptions, and compute their tax and the tax refund or balance due:
Explanation / Answer
Sally’s salary 60,000.00 Andy’s salary 45,000.00 Total salary Income 105,000.00 Chase Bank Interest 3,000.00 Total Income 108,000.00 Standard deduction 24,000.00 Taxable Income 84,000.00 Taxable Income Tax Rate Incremental Income Tax 19,050.00 10% 19,050.00 1,905.00 77,400.00 12% 58,350.00 7,002.00 84,000.00 22% 6,600.00 1,452.00 10,359.00 Total tax 10,359.00 With-Holdings 6,000.00 Balance Tax Due 4,359.00