Mr. and Mrs. Steel, who file a joint return, have $513,200 taxable income in 2016. Compute their regular tax liability.

Question

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For 2016, the tax brackets for married couples filing jointly are: 10% on income up to $18,550, 15% on income over $18,550 to $75,300, 25% on income over $75,300 to $151,900, 28% on income over $151,900 to $231,450, 33% on income over $231,450 to $413,350, 35% on income over $413,350 to $466,950, and 39.6% on income over $466,950. Calculating the tax for each bracket and summing them gives a total tax liability of $148,894.

Mr and Mrs