Question

Paul is a head of household with a taxable income sehold with a taxable income of $110,000. He is entitled to a $8000 tax credit. Compute his tax owed using the table below. The tax owed is $ . (Type an integer or a de Head of Tax Rate Single Household 10% up to $8,925 up to $12,750 15% up to $36,250 up to $48,600 25% up to $87,850 up to $125,450 28% up to $183,250 up to $203,150 33% up to $398,350 up to $398,350 35% up to $400,000 up to $425,000 standard deduction po 100 S6100 $8950 exemption (pers3900 $3900 person)

Answer 1

Taxable income = $ 110000

Tax liability = 0.10 × $ 12750 + 0.15 × ( $ 48600 - $ 12751 ) + 0.25 × ( $ 110000 - $ 48601)

Tax liability = 1275 + $ 5377.35 + $ 15349.75

Tax liability = $ 22002.10

Tax credit reduce tax liability.

Tax owed = Tax liability - Tax credit

Tax owed =   $ 22002.10 - $ 8000

Tax owed = $ 14002