Question

QUESTION 3 Maureen Smith is a single individual. She claims a standard deduction of $12,000. Her salary for the year was $177,100. Assume the following tax table is applicable. 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 Average Tax Rate at Top of Bracket Up to $9,525 $0.00 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 24.0 20.4 32.0 22.8 $82,500-$157,500 14,089.50 $157,500-$200,000 32,089.50 $200,000-$500,000 45,689.50 Over $500,000 150,689.50 What is her federal tax liability? 35.0 30.1 37.0 37.0

Answer 1

Solution: - Maureen Smith is a single individual . She claims a standard deduction of $12,000 . Her salary for the year was $177,100. Taxable income of Maureen Smith= Salary - Standard Deduction = $177,100 - $ 12,000 = $165,100 Taxable income of Maureen Smith lies in ($157,500 to $200,000) so, her federal tax liability ist $ 32,089.50 + 32% ( $ 165,100 – $157,500) - $ 32,089,50 +0.38 ( $7,500) = $ 32,089,50 + $ 2438 = $ 34,521.50 Answer