Rates for a Couple Filing a Joint Tax Return Are

question 15

Short Answer

Rates for a couple filing a joint tax return are 10% up to $16.750 and 15% thereafter up to $68,000. Sadie and Gilbert Goldberg earned combined gross income of $72,000. They itemized the following deductions: $9,400 interest on their home, $3,700 state taxes, $2,500 donation to their church, and a $150 donation to Goodwill. They took exemptions of $3,650 each for themselves and their two children. Compute the amount of income tax before credits.

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Definitions:

Cost of Merchandise Sold

An expense account that reflects the direct costs associated with the goods sold by a company during an accounting period.

Equation

A mathematical statement that asserts the equality of two expressions, represented by the symbol "=".

Gross Profit

Sales minus the cost of merchandise sold.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.