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40k of taxes on 260k is 15% tax rate.
Based on marginal brackets the tax owed on 260k is:
SINGLE: 16,056.25 for first $164550+33% of (260,000-154,551= 105,449)=33% of 105,449=34798
16056+34798=50854 owed. Reduce this by standard deduction of 10900 I can see the 40k number if he files as single. No other deductions needed.
This would be even easier to achieve if married.
Use numbers from tax tables at
Reference Room
Based on marginal brackets the tax owed on 260k is:
SINGLE: 16,056.25 for first $164550+33% of (260,000-154,551= 105,449)=33% of 105,449=34798
16056+34798=50854 owed. Reduce this by standard deduction of 10900 I can see the 40k number if he files as single. No other deductions needed.
This would be even easier to achieve if married.
Use numbers from tax tables at
Reference Room
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