use the 2021 marginal tax rates to compute the income tax owed by the following couple. filing status…

use the 2021 marginal tax rates to compute the income tax owed by the following couple. filing status: married filing jointly gross income: $153,000 adjustments: $20,500 deductions: $4590 state taxes $10,900 mortgage interest $5500 property taxes $14,500 charitable contributions tax credit: $7400 click the icon to view the 2021 marginal tax rates. the income tax owed is $ (type an integer or a decimal. round to the nearest cent as needed.)

use the 2021 marginal tax rates to compute the income tax owed by the following couple. filing status: married filing jointly gross income: $153,000 adjustments: $20,500 deductions: $4590 state taxes $10,900 mortgage interest $5500 property taxes $14,500 charitable contributions tax credit: $7400 click the icon to view the 2021 marginal tax rates. the income tax owed is $ (type an integer or a decimal. round to the nearest cent as needed.)

Answer

Explanation:

Step1: Calculate adjusted - gross income

Adjusted gross income (AGI) = Gross income - Adjustments. AGI = $153000 - 20500=$132500$.

Step2: Calculate itemized deductions

Itemized deductions = State taxes+Mortgage interest+Property taxes+Charitable contributions. Itemized deductions = $4590 + 10900+5500 + 14500=$35490$.

Step3: Calculate taxable income

Taxable income = AGI - Itemized deductions. Taxable income = $132500-35490=$97010$.

Step4: Calculate tax liability using 2021 marginal tax rates for married - filing - jointly

For married - filing - jointly in 2021: The first $19900$ is taxed at $10%$, tax amount = $19900\times0.10=$1990$. The amount between $19901$ and $81050$ ($81050 - 19900 = 61150$) is taxed at $12%$, tax amount = $61150\times0.12=$7338$. The remaining amount ($97010-(81050)=15960$) is taxed at $22%$, tax amount = $15960\times0.22=$3511.2$. Total tax liability before credit = $1990 + 7338+3511.2=$12839.2$.

Step5: Apply tax credit

Tax owed = Total tax liability before credit - Tax credit. Tax owed = $12839.2-7400=$5439.2$.

Answer:

$5439.20$