You are meeting with the Morales Family which includes: Bobby Morales, age 48 Toretha Morales, age 47

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You are meeting with the Morales Family which includes: Bobby Morales, age 48 Toretha Morales, age 47 Roberto Morales, age 15 Angel Morales, age 12. Bobby is a radio DJ who makes the bulk of his income from hosting events throughout the country. He hires other DJs and celebrity entertainers to assist him in throwing the events. He earns a gross income of $75,000 from the radio station and $475,000 from the event hosting business. Toretha is a Managing Director at a global asset management firm and specializes in HR. Between salary and vesting restricted stock units, she makes $1.25 million dollars a year. The children are in private middle and high schools and live with their parents in New Jersey. Angel goes to sleepaway camp, which cost $18,000 last year. He plans to go again this year. Bobby gives you a rundown of his tax situation, but for the purposes of this meeting, he communicates to you that he nets 45% on the income he earns from the event hosting business. Also, note that Bobby's business qualifies for a Qualified Business Income (QBI) deduction, which provides for a deduction of 20% of the net income he earned (for the purposes of this exercise). Toretha is hired on a contractual basis. In her contract, she agrees to be paid a bonus (in Jan 2023 for work done in 2022) for extra services that she provided to potential spinoff of the firm that was ultimately shut down in 1st quarter of 2023. She was paid the $100,000 bonus on Jan. 2, 2023. The check itself was dated 12/30/2022. Bobby and Toretha have always believed in keeping their finances separate, including the taxes, so they have been filing "Married Filing Separately" all of this time. The Morales family wants to settle one issue that they have been wondering about all along - Would it be better for them to file separately, or together? Compute their separate tax liabilities and compute what their taxes would look like filing jointly and share your findings with the Morales family. Ignore any Alternative Minimum Tax implications.