Maria and Tony Are Married

question 103

Essay

Maria and Tony are married. They are preparing to file their 2018 tax return. If they were to file as single taxpayers, Maria and Tony would report $10,000 and $70,000 of taxable income, respectively. On their joint tax return, their taxable income is $80,000. How much of a marriage penalty or benefit will Maria and Tony experience in 2018? (Use Tax Rate Schedule.)

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Definitions:

Behavioral Economists

Researchers in economics focusing on how psychological, cognitive, emotional, cultural, and social aspects influence the economic choices made by individuals and institutions.

Availability Heuristic

A mental heuristic that uses the most readily accessible examples in someone's memory to appraise a specific area, concept, technique, or decision-making process.

Behavioral Economists

Scholars who study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Payroll Deduction

A method where an employer withholds a portion of an employee's salary for taxes, insurance premiums, or contributions to retirement plans, directly reducing the employee's take-home pay.