Question

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,100. Meg works part-time at the same university. She earns $33,400 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)

Answer 1

Complete Question:

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,100. Meg works part-time at the same university. She earns $33,400 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules,Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)

STCG - $1,500

STCL - $0

LTCG - $13,160

LTCL - ($10,000)

Solution:

Total tax liability = $8,564 + $0 = $8,564

The Comer's taxable income of $74,600 is less than the actual $9% or $78,750 of $2,600 including capital gains.

Consequently, their $3,080 is nil percent paid. Would have the capital gains reach $2,600, the first $2,600 would also be taxed at zéro%, and the remainder would have been taxed at 15%.