Computation of Taxable Income:-
Taxable Income from employment = $148,800
Add: Long term capital gain = $1,000
Taxable Income: $149,800
Since John and Nicole fall in 25% tax bracket. So Long term capital gain will be taxed at the rate of 15%.
please solve this problem and provide the formula used Tax Rates 10% 15% 25% Individual Returns...
Given the following Federal Tax Table, find the taxes for an individual in contrast to a couple making a taxable income of $100,000. What is the average tax rate for each? FEDERAL PERSONAL INCOME TAXES (2014) ON TAXABLE INCOME Marginal Tax Rate Single Married 10.00% $0 - $9,075 $0 - $18,150 15.00% $9,076 - $36,900 $18,151 - $73,800 25.00% $36,901 - $89,350 $73,801 - $148,850 28.00% $89,351 - $186,350 $148,851 - $226,850 33.00% $186,351 - $405,100 $226,851 - $405,100 35.00%...
Kim and Kayne have been dating for years and are now thinking about getting married. As a financially sophisticated couple, they want to think through the tax implications of their potential union. a. Suppose Kim and Kanye both earn $68000 (so their combined income is $136000 Using the tax bracket information calculate the combined tax bill that they would pay if they remain single, and compare that to the taxes they would pay if they were married and filed a...
Kim and Kanye have been dating for years and are now thinking about getting married. As a financially sophisticated couple, they want to think through the tax implications of their potential union. Suppose Kim and Kanye both earn $70,000 (so their combined income is $140,000). Using the tax bracket information in Table 1.2 (or the Excel file available on MyFinanceLab with the same information), calculate the combined tax bill that they would pay if they remain single, and compare that...
Tax rate Taxable income $0-$9,075 $9,076-$36.900 $36.901-$89,350 $89,351-$186,350 $186,351-$405,100 $405,101-$406,750 Over $406,750 10% 15% 25% 28% 33% 35% 39.6% 10% 15% 25% 28% 33% 35% 39.6% $0 $9,075 $36,900 $89,350 $186,350 $405,101 $406,750 Taxable income The Williams household's annual income is $188000. Based on the U.S.federal tax rates below, what is the average tax rate for the Williams household? (Assume zero tax deductions for solving this problem.) Choose one: O A. 33% O B.22.22% OC. 24.0096 O D. 45%
During 2015, the Smiths and the Jones both filed joint tax returns. For the tax year ended December 31, 2015, the Smiths' taxable income was $134,000, and the Jones had total taxable income of $67,000. a. Using the federal tax rates given in Table 1.2, for married couples filing joint returns, calculate the taxes for both the Smiths and the Jones. Joint taxes are required. b. Calculate and compare the ratio of the Smiths' to the Jones' taxable income and...
1 Data Table TABLE 1.2: Tax Rates and Income Brackets for Joint Returns (2015) Taxable Income Joint Returns $0 to $18,150 $18,151 to $73,800 $73,801 to $148,850 $148,851 to $226,850 $226,851 to $405,100 $405,101 to $457,600 Over $457,600 Tax Rates 10% 15% 22% 3"5% 35% 39.6% (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) Mike and Julie Bedard are a working couple. They will fle...
During 2015, the Smiths and the Jones both filed joint tax returns. For the tax year ended December 31, 2015, the Smiths' taxable income was $ 113,000, and the Jones had total taxable income of $ 56,500. Taxable Income Tax Rates Joint Returns 10% $0 to $18,150 15% $18,151 to $73,800 25% $73,801 to $148,850 28% $148,851 to $226,850 33% $226,851to $405,100 35% $405,101 to $457,600 39.6% Over $457,600 a. Using the federal tax rates given in Table 1.2 for married couples filing joint returns, the taxes...
DROP DOWN OPTIONS 1. (28%,19.50%,25%) 2. (19.50%, 20.80%,29.20) 3. (25%, 15%,16.67%) 4. (16.67%, 29.20%, 18.15% 2. Calculating tax liabilities Calculating Taxable Income Taxable income Rate $1 $9,075 10.0% $9,076-$36,900 15.0% 25.0% $36,901-$89,350 $89,351 _ $186,350 28.0% $186,351-$405,100 33.0% $405,101-$406,750 35.0% 39.6% Over $406,751 Using the previous tax table, compute the tax liability for each individual in the scenarios presented, rounding the liability to the nearest dollar. In addition, use the dropdown lists to identify the marginal tax rate and average...
2. Calculating tax liabilities Calculating Taxable Income Rate 10.0% 15.0% Taxable income $1 - $9,075 $9,076 - $36,900 $36,901 - $89,350 $89,351 - $186,350 $186,351 - $405,100 $405,101 – $406,750 Over $406,751 25.0% 28.0% 33.0% 35.0% 39.6% Using the previous tax table, compute the tax liability for each individual in the scenarios presented, rounding the liability to the nearest dollar. In addition, use the dropdown lists to identify the marginal tax rate and average tax rate for both Jen and...
During 2015, the Smiths and the Jones both filed joint tax returns. For the tax year ended December 31, 2015, the Smiths' taxable income was $118,000, and the Jones had total taxable income of $59,000 a. Using the federal tax rates given in Table 1.2, EEB or married couples filing joint returns, calculate the taxes for both the Smiths and the Jones b. Calculate and compare the ratio of the Smiths' to the Jones' taxable income and the ratio of...