Mr and Mrs Steel, who file a joint return, have $513,200 taxable income in 2018. Compute their regular tax liability.

Question

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For 2018, the tax brackets for married couples filing jointly are: 10% on income up to $19,050; 12% on income over $19,050 to $77,400; 22% on income over $77,400 to $165,000; 24% on income over $165,000 to $315,000; 32% on income over $315,000 to $400,000; 35% on income over $400,000 to $600,000; and 37% on income over $600,000. Calculating the tax for each bracket and summing them gives a total tax liability of $130,999.

Mr and Mrs Steel, Who File a Joint Return, Have