Andy and Sally are married and under 50. They have no dependents. Sally’s salary
ID: 2529889 • 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 $3,000) 45,000
City of Dallas bonds 1,500
Chase Bank Interest 3,000
Qualifying Ford stock dividends 5,000
Take a standard deduction, deduct their personal exemptions, and compute their tax and the tax refund or balance due.
Explanation / Answer
Particulars
Amount ($)
Sally's salary
60000
Andy's salary
45000
105000
Add: Interests
3000
Dividend is exempt
Total income (105000 +3000)
108000
Less: Standard deduction (Married couple filing joint return)
12700
Taxable income
95300
Particulars
Amount ($)
Amount ($)
Tax
Up to 18650 @10%
1865
From $18651 to $75900 @15%
8587.5
Above $75900 to $$95300 @25%
4850
Tax liability
15302.5
Less: Federal withholding:
Sally
3000
Andy
3000
6000
Tax due
9302.5
Particulars
Amount ($)
Sally's salary
60000
Andy's salary
45000
105000
Add: Interests
3000
Dividend is exempt
Total income (105000 +3000)
108000
Less: Standard deduction (Married couple filing joint return)
12700
Taxable income
95300