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? Table 18.1 Personal income taxSingle FilerIncomes$0 to $9,525$9,526 to $38,700$38,701 to $82,500$82,501 to $157,500$157,501 to $200,000$200,001 to $500,000Over $500,000Rate10%12%22%24%32%35%37%Married Joint FilersIncomes$0 to $19,050$19,051 to $77,400$77,401 to $165,000$165,001 to $315,000$315,001 to $400,000$401,000 to $600,000Over $600,000

The marginal tax rate represents the percentage of tax applied to an individual's or entity's next…

Answered: which has the highest marginal tax…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Table 1.4 Use the following tax rates and income brackets to answer the following question(s). Tax Rate Individual Returns 10% $0 to $8,350 15% $8,351 to $33,950 $33,951 to $82,250 $82,251 to $171,550 $171,551 to $372,950 Over $372,951 25% 28% 33% 35% Joint Returns $0 to $16,700 $16,701 to $67,900 $67,901 to $137,050 $137,051 to $208,850 $208,851 to $372,950 $16,750 $18,836 $22,425 $25,116 Over $372,951 Josh earned $89,700 in taxable income and files an individual tax return. What is the amount of Josh's taxes for the year?
Tax Rate For Single Filers 10% $0 to $10,275 12% $10,275 to $41,775 22% $41,775 to $89,075 24% $89,075 to $170,050 32% $170,050 to $215,950 35% $215,950 to $539,900 Assuming you have a personal income of $99,270: what is your total tax liability? What is your average tax rate?
Use the Tax Rate Tables, Exhibit 18-3, to calculate the tax liability (in $) for the taxpayer. Name Filing Status Taxable Income Tax Liability Rua head of household $195,200 $
Chapter 3 Activity – Taxes Individual Income Tax Brackets (2021) Marginal Tax Rate Single, taxable income over: Joint, taxable income over: Head of Household, taxable income over: 10% $0 $0 $0 12% $9,950 $19,900 $14,200 22% $40,525 $81,050 $54,200 24% $86,375 $172,750 $86,350 32% $164,925 $329,850 $164,900 35% $209,425 $418,850 $209,400 37% $523,600 $628,300 $523,600 Standard Deduction Amounts (2021) Filing Status Deduction Amount Single $12,550 Married Filing Jointly $25,100 Head of Household $18,800 Long-term Capital Gains & Qualified Dividends (2021) Tax Rate Single Joint Head of Household 0% Under $40,000 Under $80,800 Under $54,100 15% $40,400 $80,800 $54,100 20% $445,850 $501,600 $473,750 Additional 3.8% Net Investment Income Tax for MAGI over $200,000 / $250,000 / $200,000 Calculate the federal income…
Individual Taxpayers Income Tax Bracket ($) 0 - 9,700 9,701 - 39,475 39,476- 84,200 84,201 - 160,725 160,726 - 204,100 204,101 - 510,300 510,301 - 10% within bracket $970+ 12% within bracket $4,543 + 22% within bracket |$14,382.50 +24% within bracket $32,738.50 +32% within bracket $46,628.50 +35% within bracket Taxes Owed $153,798.50 +37% within bracket TABLE 2: 2019 tax brackets Exercise 3: Your income is $2,500,000 (2.5 million dollars) a) Compute your federal income tax b) Compute your effective tax rate
Tax Rate 10% 12% 22% 24% 32% 35% 37% Unmarried divorced, or Legally seperated Single up to $9950 $9951 to $40,525 $40,526 to $86,375 $86,376 to $164.925 $164,926 to $209,425 $209,426 to $523,600 more than $523,600 Gross income: $155,000 Adjustments: $21.500 Deductions: $4550:state taxes Tax credit: $7500 $10,800 mortgage interest $5400 property taxes $15.600 charitable contribution Standard Deduction $12,550 Use the 2021 marginal tax rates in the above table to calculate the federal tax owed by married filing jointly Fill in the blank based on the above information Adjusted gross income-$155.000 Income tax-S Hemized deduction-$36.350 Taxable income-$133.500 (Note: Here we use itemized deduction) Tax computation-S Married and each Partner files a separate tax return Married Filing separately up to $9950 $9951 to $40,525 $40,526 to $86,375 $86,376 to $164,925 $164,926 to $209,425 $209,426 to $314,150 more than $314,150 36.350 $12,550 -$21.500 <-S 133.500 Married and both partners file a…
es Determine the retirement savings contributions credit in each of the following independent cases. Use Table 9-2. a. A married couple filing jointly with modified AGI of $37,500 and an IRA contribution of $1,790. b. A married couple filing jointly with modified AGI of $58,000 and an IRA contribution of $1,880. c. A head of household taxpayer with modified AGI of $33,000 and Roth IRA contribution of $1,980. d. A single taxpayer with modified AGI of $12,000 and an IRA contribution of $2,775. Retirement Savings Contributions Credit
STEN Rate 10% 12% 22% 24% 32% 35% 37% Single Single Tax Rates $0-$9,875 $9,875 - $40,125 $40,125-$85,525 $85,525-$163,300 $163,300 $207,350 $207,350-$518,400 $518,400 or more Standard Deductions $12,400 Married Filing Jointly $0-$19,750 $19,750-$80,250 $80,250-$171,050 $171,050-$326,600 $326,600-$414,700 $414,700-$622,050 $622,050 or more Married Filing Jointly Find Martin's taxable income. Round to the nearest cent. $1674.50 Martín is a 30-year-old, full-time college student sharing rent with a roommate who is filing separately from Martin. Martin made $15,600 at his part-time job in 2020. He does not have any adjustments or itemized deductions. $24,800 Martín qualifies for a $17 earned income tax credit. Compute Martín's tax owed. Round to the nearest cent. $ Suppose Martin's W-2 says that he paid $390 in taxes in 2020. Does Martín owe taxes, or is he due a refund? O Has to pay O Refund Calculate Martin's taxes owed or refund. Round your answer the nearest cent. S
Question 3 Kansas State Income Taxes rates for Singles are 3.1% I $30,000 4 pts Where I is taxable income and T is the tax rate for that income levels. Thus if someone has $20,000 in Taxable Income they would only pay 5.25% on the income between $15,000 and $20,000 and 3.1% on income up to $15,000 Kansas has a $3,000 Standard deduction (thus the first $3,000 of does not count toward taxable income). W Compute the how much income taxes are owed If the person has income of $38,300 in a year. Remember income and taxable income are NOT the same thing.
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? (For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.) a. Marginal tax rate b. Marginal tax rate
2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 523,600 $ 10% of taxable income $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 523,600 $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 19,900 $ 81,050 $ 172,750 $ 329,850 $ 418,850 $ 628,300 $ 10% of taxable income $ 19,900 $ 81,050 $ 172,750 $ 329,850 $ 418,850 $ 628,300 $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the…
2018 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 $157,500 $157,500 - $200,000 $200,000 $500,000 You Pay This Amount on the Base of the Bracket $0 If Your Taxable Income Is 952.50 4,453.50 14,089.50 32,089.50 45,689.50 150,689.50 Over $500,000 Standard deduction for individual: $12,000 Married Couples Filing Joint Returns Plus This Percentage on the Excess over the Base (Marginal Rate) 1,905.00 10.0 8,907.00 28,179.00 64,179.00 91,379.00 161,379.00 12.0 22.0 24.0 32.0 35.0 You Pay This Amount on the Base of the Bracket $0 37.0 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0 12.0 22.0 24.0 Average Tax Rate at Top of Bracket % 32.0 35.0 37.0 Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $165,000 - $315,000 $315,000 $400,000 $400,000 - $600,000 Over $600,000 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she…

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