A married couple with no children has the following in year 2012: The husband ha
ID: 2716237 • Letter: A
Question
A married couple with no children has the following in year 2012:
The husband has an AGI of $65,000 and allowable itemized deductions of $10,800.
The wife has an AGI of 58,000, and allowable itemized deductions of $800.
Year 2012 federal tax brackets, personal exemption and standard deductions are given below.
2012 Tax Rates & Tax Brackets
Tax Rate
Single
Married Filing Joint
Married Filing Separate
Head of Household
10%
Up to $8,700
Up to $17,400
Up to $8,700
Up to $12,400
15%
$8,701 – $35,350
$17,401 – $70,700
$8,701 – $35,350
$12,401 – $47,350
25%
$35,351 – $85,650
$70,701 – $142,700
$35,351 – $71,350
$47,351 – $122,300
28%
$85,651 – $178,650
$142,701 – $217,450
$71,351 – $108,725
$122,301 – $198,050
33%
$178,651 – $388,350
$217,451 – $388,350
$108,726 – $194,175
$198,051 – $388,350
35%
Over $388,350
Over $388,350
Over $194,175
Over $388,350
Standard Deduction:
$5,950 $11,900 $5,950 $8,700
Personal Exemption: $3,800/person
(a) Compute the couple’s 2012 federal income tax, if they file their federal taxes jointly
$15,934
$17,935
$16,469
$17,032
(b) Compute the couple’s 2012 federal income tax, if they file their federal taxes separately
$16,723
$17,431
$16,108
$18,004
Tax Rate
Single
Married Filing Joint
Married Filing Separate
Head of Household
10%
Up to $8,700
Up to $17,400
Up to $8,700
Up to $12,400
15%
$8,701 – $35,350
$17,401 – $70,700
$8,701 – $35,350
$12,401 – $47,350
25%
$35,351 – $85,650
$70,701 – $142,700
$35,351 – $71,350
$47,351 – $122,300
28%
$85,651 – $178,650
$142,701 – $217,450
$71,351 – $108,725
$122,301 – $198,050
33%
$178,651 – $388,350
$217,451 – $388,350
$108,726 – $194,175
$198,051 – $388,350
35%
Over $388,350
Over $388,350
Over $194,175
Over $388,350
Explanation / Answer
Adjusted Gross Income
Tax
Husband Filing Separately
Tax
Wife filing separately
Adjusted Gross Income
Tax
Married Filing JointlyAdjusted Gross Income
Adjusted gross income (AGI) $123,000Tax
Itemized deduction $11,600 Standard deduction $11,900 Deduction to use (higher of Standard deduction and Itemized deduction) $11,900 Deduction for exemptions $7,600 Taxable income $103,500 Tax $17,935 Tax for married filing jointly $17,935Husband Filing Separately
Adjusted gross income (AGI) $65,000Tax
Itemized deduction $10,800 Standard deduction $5,950 Deduction to use (higher of Standard deduction and Itemized deduction) $10,800 Deduction for exemptions $3,800 Taxable income $50,400 Tax $8,630Wife filing separately
Adjusted Gross Income
Adjusted gross income (AGI) $58,000Tax
Itemized deduction 800 Standard deduction $5,950 Deduction to use (higher of Standard deduction and Itemized deduction) $5,950 Deduction for exemptions $3,800 Taxable income $48,250 Tax $8,093 Tota Tax $16,723Related Questions
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