2018 Individual Tax Rates | |||||
Single Individuals | |||||
If Your Taxable Income Is |
You Pay This Amount on the Base of the Bracket |
Plus This Percentage on the Excess over the Base (Marginal Rate) |
Average Tax Rate at Top of Bracket |
||
Up to $9,525 | $0 | 10.0 | % | 10.0 | % |
$9,525 - $38,700 | 952.50 | 12.0 | 11.5 | ||
$38,700 - $82,500 | 4,453.50 | 22.0 | 17.1 | ||
$82,500 - $157,500 | 14,089.50 | 24.0 | 20.4 | ||
$157,500 - $200,000 | 32,089.50 | 32.0 | 22.8 | ||
$200,000 - $500,000 | 45,689.50 | 35.0 | 30.1 | ||
Over $500,000 | 150,689.50 | 37.0 | 37.0 |
Standard deduction for individual: $12,000
Married Couples Filing Joint Returns | |||||
If Your Taxable Income Is |
You Pay This Amount on the Base of the Bracket |
Plus This Percentage on the Excess over the Base (Marginal Rate) |
Average Tax Rate at Top of Bracket |
||
Up to $19,050 | $0 | 10.0 | % | 10.0 | % |
$19,050 - $77,400 | 1,905.00 | 12.0 | 11.5 | ||
$77,400 - $165,000 | 8,907.00 | 22.0 | 17.1 | ||
$165,000 - $315,000 | 28,179.00 | 24.0 | 20.4 | ||
$315,000 - $400,000 | 64,179.00 | 32.0 | 22.8 | ||
$400,000 - $600,000 | 91,379.00 | 35.0 | 26.9 | ||
Over $600,000 | 161,379.00 | 37.0 | 37.0 |
Standard deduction for married couples filing jointly: $24,000
Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $116,000. She doesn't itemize deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,400. How much does Jenna owe to the IRS for taxes? Do not round intermediate calculations. Round your answer to the nearest cent.
$
Solution: Jenna is a single taxpayer.
Jenna owe to the IRS for taxes is $ 20,359.50
Notes:
1) Taxable income
Income | $ 116,000 |
Long Term Capital Gain | $ 7,400 |
Annual Gross Income | $ 123,400 |
Standard Deduction | $ (12,000) |
Taxable Income | $ 111,400 |
2) Total Tax
Particulars | Taxable Income | Calculation | Tax |
Ordinary Income ($111,400 - $ 7,400) | $ 104,000 | 14089.50 +(104000-82500)*24% | $ 19,249.50 |
Long Term Capital Gain | $ 7,400 | 7400*15% | $ 1,110.00 |
Total Tax | $ 20,359.50 |
2018 Individual Tax Rates Single Individuals If Your Taxable Income Is You Pay This Amount on...
b3.4 2018 Individual Tax Rates Single Individuals If Your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base (Marginal Rate) Average Tax Rate at Top of Bracket Up to $9,525 $0 10.0 % 10.0 % $9,525 - $38,700 952.50 12.0 11.5 $38,700 - $82,500 4,453.50 22.0 17.1 $82,500 - $157,500 14,089.50 24.0 20.4 $157,500 - $200,000 32,089.50 32.0 22.8 $200,000 - $500,000 45,689.50 35.0 30.1 Over $500,000...
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 Over $500,000 Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 952.50 12.0 4,453.50 22.0 14,089.50 24.0 32,089.50 32.0 45,689.50 35.0 150,689.50 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 30.1 37.0 Standard deduction for individual:...
2018 Individual Tax Rates Single Individuals If Your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base (Marginal Rate) Average Tax Rate at Top of Bracket Up to $9,525 $0 10.0 % 10.0 % $9,525 - $38,700 952.50 12.0 11.5 $38,700 - $82,500 4,453.50 22.0 17.1 $82,500 - $157,500 14,089.50 24.0 20.4 $157,500 - $200,000 32,089.50 32.0 22.8 $200,000 - $500,000 45,689.50 35.0 30.1 Over $500,000 150,689.50...
Problems - Financial Statements, Cash Flow, and Taxes 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Average Tax If Your Taxable Amount on the on the Excess over the Rate at Income Is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $9,525 $0 10.0% 10.0% $9,525 - $38,700 952.50 12.0 11.5 $38,700 - $82,500 4,453.50 22.0 17.1 $82,500 - $157,500 14,089.50 24.0 20.4 $157,500 - $200,000 32,089.50 32.0 22.8 $200,000 - $500,000...
$0 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 Over $500,000 Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) 10.0% 952.50 12.0 4,453.50 22.0 14,089.50 24.0 32,089.50 32.0 45,689.50 35.0 150,689.50 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 30.1 37.0 Standard deduction for individual: $12,000...
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 Over $500,000 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 952.50 12.0 4,453.50 22.0 14,089.50 24.0 32,089.50 32.0 45,689.50 150,689.50 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 30.1 37.0 ....
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