suppose a married couple have the following individual adjusted gross incomes, total combined deductions…

suppose a married couple have the following individual adjusted gross incomes, total combined deductions, and medical expenses. answer parts (a) - (f). click the icon to view the 2021 marginal tax rates and standard deductions. adjusted gross income of spouse 1: $71,000 adjusted gross income of spouse 2: $67,000 combined deductions without medical expenses: $31,000 medical expenses for spouse 1: $10,200 medical expenses for spouse 2: none medical expenses in excess of 7.5% of adjusted gross income can be claimed as a deduction. e. calculate the income tax owed by spouse 2 if the couple file separately and they split the $31,000 in deductions evenly. the income tax owed by spouse 2 is $ .

suppose a married couple have the following individual adjusted gross incomes, total combined deductions, and medical expenses. answer parts (a) - (f). click the icon to view the 2021 marginal tax rates and standard deductions. adjusted gross income of spouse 1: $71,000 adjusted gross income of spouse 2: $67,000 combined deductions without medical expenses: $31,000 medical expenses for spouse 1: $10,200 medical expenses for spouse 2: none medical expenses in excess of 7.5% of adjusted gross income can be claimed as a deduction. e. calculate the income tax owed by spouse 2 if the couple file separately and they split the $31,000 in deductions evenly. the income tax owed by spouse 2 is $ .

Answer

Explanation:

Step1: Calculate deductible medical expenses for spouse 1

First, find 7.5% of spouse 1's adjusted - gross income. $71000\times0.075 = 5325$. Medical expenses for spouse 1 are $10200$. So deductible medical expenses for spouse 1 are $10200 - 5325=4875$.

Step2: Calculate total deductions for spouse 2

The couple splits the non - medical deductions of $31000$ evenly, so spouse 2 gets $\frac{31000}{2}=15500$ in non - medical deductions. Since spouse 2 has no medical expenses, the total deductions for spouse 2 are $15500$.

Step3: Calculate taxable income for spouse 2

Taxable income = Adjusted gross income - Total deductions. Spouse 2's adjusted gross income is $67000$. So the taxable income is $67000 - 15500=51500$.

Step4: Calculate income tax for spouse 2

Assume we use the 2021 tax brackets for married filing separately. For the first $9950$ of taxable income, the tax rate is 10%, so the tax is $9950\times0.1 = 995$. The amount of taxable income in the 12% bracket is $40525 - 9950=30575$, and the tax on this amount is $30575\times0.12 = 3669$. The amount of taxable income in the 22% bracket is $51500-(9950 + 30575)=10975$, and the tax on this amount is $10975\times0.22 = 2414.5$. The total income tax for spouse 2 is $995+3669 + 2414.5=7078.5$.

Answer:

$7078.5$