What is the amount of the tax liability for a married couple with taxable income of $135,500?A. $20,325B. $26,238C. $33,875D. $19,488
For married individuals if the marginal tax rates and the appropriate income brackets for the year 2010 are used, the income of the couple can be divided into the following:
- $16750 taxed at 10% implies a tax of $1675
- $51250 taxed at 15% implies a tax of $7687.5
- $67500 taxed at 25% implies a tax of $16875
The sum of the three values calculated is $1675 + $7687.5 + $16875 = $26237.5
Rounding $26237.5 gives $26238.
The correct answer for the amount of tax liability for the married couple on an income of $135500 is option B or $26238.