Program to calculate their total tax bill

Reference no: EM131011230

Rachel and Harry are planning to get married. Both have successful careers and expect to earn the following this year.

Rachel Harry

Salary	$155,380	$146,200
Interest income (taxable)	6,750	45,325
Long-term capital gain/(loss)	5,798	-
Total income	$167,928	$191,525
Itemized deductions	$28,763	$ 15,271

a. Use the PERSTAX program to calculate their total tax bill as single individuals and determine how much it will cost them in taxes to get married. Assume that getting married during a year subjects the entire year's income to the married filing jointly rate schedule. Assume there are no state taxes.

b. Duncan and Angela are also considering getting married but have considerably lower incomes as follows.

	Duncan	Angela
Salary	$56,450	$37,829
Itemized deductions	6,048	3,224

What will it cost them to get married?

Reference no: EM131011230

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