For a corporate taxpayer, how much additional tax savings is generated by a $1,000 tax credit as compared to a $1,000 tax deduction? Correct answer should be $790
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For a corporate taxpayer, how much additional tax savings is generated by a $1,000 tax credit as compared to a $1,000 tax deduction?
Correct answer should be $790
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- (5) Applying the following hypothetical Federal Income Tax Rate Table, for a Single Tax-Filer earning $100,000 annually, calculate the following (Show your Calculations): a) Total Tax Due? b) Marginal Tax Rate? c) Effective Tax Rate?4.An individual made $85,000 for the year. Using the tax given , answer the following questions: A.What is this person's marginal tax rate? B.How much tax does this person owe? C.What is the effective tax rate?. Explain and calculate the differences resulting from a $1,000 tax credit versus a $1,000 tax deduction for a single taxpayer with $40,000 of pre-tax income that takes a standard deduction of $12,000. Be sure to show your work. Taxable income is: Taxable Income Not Over: $9,700 $39,475 $84,200 $160,275 $0 $9,701 $39,476 $84,201 Tax Due Is: 10% of the taxable income $1,940 plus 12% of the excess over $19,400 $9,086 Plus 22% of the excess over $78,950 $28,765 plus 24% of the excess over $168,400
- Suppose a tax is such that an individual with an income of $10,000 pays $2000 of tax, a person with an income of $20,000 pays $3000 of tax, a person with an income of $30,000 pays $4000 of tax, and so forth. What is each person’s average tax rate? Is this tax regressive, proportional, or progressive?You understand that, given a choice between a $1,000 tax deduction and a $1,000 tax credit, you would opt for the credit every time. But how about as be-tween above-the-line (“for AGI”) and below-the-line (“from AGI”) deductions? As between a $1,000 “for AGI” deduction and a $1,000 itemized / “from AGI” deduction, which would you generally prefer to have, and why?You already understand that, given a choice between a $1,000 tax deduction and a $1,000 tax credit, you would opt for the credit every time. But how about as be-tween above-the-line (“for AGI”) and below-the-line (“from AGI”) deductions? As between a $1,000 “for AGI” deduction and a $1,000 itemized / “from AGI” deduction, which would you generally prefer to have, and why? Note: As CPAs we’re big on time-efficiency, so we’re also big on acronyms. It takes way too long to say (or type) “adjusted gross income.” We prefer “AGI” instead.
- You have a choice between a tax deduction of $1,000 or a refundable tax credit of $300. What factors/circumstances will determine which option is the better choice for you?Given the following tax structure, what minimum tax would need to be assessed on Shameika to make the tax progressive with respect to effective tax rates? Taxpayer Salary Muni-Bond Interest Total Tax Mihwah $ 34,000 $ 34,000 $ 3,672 Shameika $ 74,000 $ 42,000 ???Utilizing our Federal income tax table in this chapter, at a pre-tax net income of $20,000,000, which has the highest marginal tax rate, an individual or a C corporation?
- Use the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000: Taxable income Up to $47,630 On the next $47,629 On the next $52,408 On the next $62,704 Over $210,371 Select one: Tax Rate 15% 20.5% Based on the above, the average tax rate (ATR) is closest to: a. 19.15% b. 19,45% c. 20.5% d. 26.0% 26% 29% 33%1. A person had $3545 withheld for federal income taxes and had a tax liability of $3400. Would this be a refund or an additional amount due? For what amount?Given the following tax structure, Taxpayer Salary Total tax $21,500 $1,032 $46,000 ??? Mae Pedro a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.) Minimum tax b. This would result in what type of tax rate structure? Tax rate structure
