Question

Diego, age 28, married Dolores, age 27, in 2018. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. Diego and Dolores' deductions for adjusted gross income amounted to $2,000; their itemized deductions were $16,000, and they have no dependents.
Table for the standard deduction

Filing Status 2018 Standard Deduction
Single $ 12,000
Married, filing jointly 24,000
Married, filing separately 12,000
Head of household 18,000
Qualifying widow(er) 24,000
Adjusted Gross Income 48730

Standard deduction of 24000

Taxable income is 24730

What is their tax liability?

Answer 1

Answer:

$2,587

Explanation:

The computation of the tax liability is shown below:

In the case of the married couples, the range of taxable income up to $19,050 would be charged a tax rate is 10%. Above $19,050 till $77,400, the tax rate is levied for 12%.

Since the taxable income is $24,730

So, the tax liability would be

= $19,050 × 10% + ($24,730 - $19,050) × 12%

= $1,905 + $681.60

= $2,587