Problem 3-42 (Algorithmic) (LO

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Problem 3-42 (Algorithmic) (LO. 5, 6, 9)

David and Ruby are engaged and plan to get married. During 2021, David is a full-time student and earns $8,500 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Ruby is employed and has wages of $79,200.

a. Compute the following:

 

David Filing Single   Ruby Filing Single Gross income and AGI $fill in the blank 665a68fb400c022_1   $fill in the blank 665a68fb400c022_2 Standard deduction (single) fill in the blank 665a68fb400c022_3   fill in the blank 665a68fb400c022_4 Taxable income $fill in the blank 665a68fb400c022_5   $fill in the blank 665a68fb400c022_6 Income tax $fill in the blank 665a68fb400c022_7   $fill in the blank 665a68fb400c022_8

 

b. Assume that David and Ruby get married in 2021 and file a joint return. What is their taxable income and income tax? Round your final answer to nearest whole dollar.

Married Filing Jointly Gross income and AGI $fill in the blank f69ed0fcb067016_1     Standard deduction (married, filing jointly) fill in the blank f69ed0fcb067016_2     Taxable income $fill in the blank f69ed0fcb067016_3     Income tax $fill in the blank f69ed0fcb067016_4

 

c. How much income tax can David and Ruby save if they get married in 2021 and file a joint return?
$fill in the blank f69ed0fcb067016_5