Tax Planning
Response to the following problem:
Mary and Chuck, unmarried individuals, are both 29 years of age. For 2014, Mary and Chuck will earn wages of $60,000 and $35,000, respectively. This will be their only source of income. They are considering getting married in either December 2014 or January 2015. Before setting a wedding date, they want to know how much they will save in federal income taxes if they get married in December and file a joint return. They ask you to compare their combined federal income taxes as single individuals with their taxes as a married couple filing jointly. Neither taxpayer has any dependents. Also, no other taxpayer can claim either of them as a dependent. Regardless of their marital status, they will claim the standard deduction.