Federal Income Tax Filing Status

Oct 13, 2025 by wbrum.org 97 views

As a married couple, Clark and Catherine must navigate the complexities of federal income tax laws. In this article, we will explore how their combined taxable income affects their tax liability when filing jointly.

Federal Income Tax Filing Status

When filing their federal income tax return, Clark and Catherine have chosen the Married Filing Jointly (MFJ) status. This filing status allows them to combine their incomes and claim certain tax benefits, such as a higher standard deduction and a lower tax rate.

Taxable Income and Tax Liability

According to the table below, Clark and Catherine have a combined taxable income of $\$137,350$ . To determine their tax liability, we need to refer to the tax tables provided by the Internal Revenue Service (IRS).

Taxable Income	Tax Liability
$\$0$ - $9,875$	$0$
$\$9,876$ - $40,125$	$1,239$ + $0.12$ (taxable income - $9,875$ )
$\$40,126$ - $80,250$	$4,473$ + $0.24$ (taxable income - $40,125$ )
$\$80,251$ - $164,700$	$14,089$ + $0.32$ (taxable income - $80,250$ )
$\$164,701$ - $214,700$	$43,663$ + $0.35$ (taxable income - $164,700$ )
$\$214,701$ - $518,400$	$61,509$ + $0.37$ (taxable income - $214,700$ )
$\$518,401$ - $622,050$	$168,489$ + $0.35$ (taxable income - $518,400$ )
$\$622,051$ - $755,950$	$204,489$ + $0.33$ (taxable income - $622,050$ )
$\$755,951$ - $1,137,350$	$235,489$ + $0.33$ (taxable income - $755,950$ )

Calculating Tax Liability

To calculate Clark and Catherine's tax liability, we need to refer to the tax table and find the applicable tax rate for their taxable income. Since their taxable income is $\$137,350$ , which falls within the range of $\$80,251$ - $164,700$ , we will use the tax rate of $0.32$ .

Using the tax table, we can calculate their tax liability as follows:

Tax Liability = $14,089$ + $0.32$ (taxable income - $80,250$ ) = $14,089$ + $0.32$ ($137,350$- $80,250$ ) = $14,089$ + $0.32$ ($57,100$) = $14,089$ + $18,272$ = $32,361$

Conclusion

In conclusion, based on the table provided, Clark and Catherine's tax liability for their combined taxable income of $\$137,350$ when filing jointly is $\$32,361$ . This amount represents the amount they should pay in federal income tax.

Tax Implications for Married Couples

When filing jointly, married couples can benefit from a higher standard deduction and a lower tax rate. However, they must also consider the tax implications of combining their incomes. In this case, Clark and Catherine's combined taxable income of $\$137,350$ results in a tax liability of $\$32,361$ .

Tax Planning Strategies for Married Couples

To minimize their tax liability, Clark and Catherine may consider the following tax planning strategies:

Maximize deductions: They can claim deductions for charitable donations, mortgage interest, and other eligible expenses.
Harvest investment losses: They can sell investments at a loss to offset gains from other investments.
Consider itemizing deductions: If their itemized deductions exceed the standard deduction, they may be able to reduce their tax liability by itemizing their deductions.

By understanding the tax implications of filing jointly and exploring tax planning strategies, Clark and Catherine can minimize their tax liability and make the most of their combined income.

References

Internal Revenue Service (IRS). (2023). Tax Tables.
Internal Revenue Service (IRS). (2023). Publication 17, Your Federal Income Tax.

Note: The tax tables and rates used in this example are for illustrative purposes only and may not reflect the actual tax tables and rates in effect for the current tax year.