Question

Required Information [The following information applies to the questions displayed below.] Part 1 of 3 Lacy is a single taxpayer. In 2018, her taxable income is $43,600. What Is her tax liability In each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) a. All of her Income is salary from her employer. Tax liability

Answer 1

Answer | Salgiy qul qualified oivisends - Salary income is the ordinary income earned by the taxpayer. It is taxable qt ovlinquy raket ordinary rates are I given in bracket. - Qualified Dividends is the special dividend It is taxeble at special rater special rates are changes from income to Lindeque of brochetus - In the question, Lacy has_taxable income of $49600 which is we have to calculate tax with three different situations,

Call It all of the income is_salary_Income Taxable_Income_of_ Lucy __ $__ 43600 taxed_at_ordinary incomes Tax_qt ordingly = $4453.50 + 22% of ($ 43600 - Rares __ 33700) • $ 4453.50 + 22% of 4900 = $ 4453.50 + $ 1078 _ $5531:50. (6) If_taxable income includes $2500 qualified dividends $41100 $ 2500 — Salary Income Byglified Dividends Taxable income < of Lacy of such total taxable at ordinary rates of $ 2500 is taxable at income of lacy, $ 41100 is taxes salary income and qualified divitends preffventily ryfes. ... Total_Tax on lacy's Taxable income - Tix on Salary qt ordinary Rates + Tax on Qusliter e iveldeals at Prefeuce – nGilly other [$4453.50+ ] 22% of $4100 - 38700) [ $ 2500 x 1 | 15% J + .

$ 3.75 : [ 4453.50 +(23% of] + I 2400) = + 375 $_4981.50 5356.50 (C) If taxable. Income_includes_$_14400_of_quglifted dudents Taxable income of lacy < - & 3/200 → & 12400 Salary Income Qualified Dividends. As already discussed in such case, salary income is taxed at _'ordinary roles and qualified dividends at preferentilly rale of taxation, Total_Tax_on_logy - oc $952.50 + 12% | 16% of (38600 - l of $ (31/200 - | + | 3/200)] +[15% of 9505)__ | [43600 - 38600 )] I + 10 + 7507 $952.50 + | $2601 $ 3553.50 + $ 750 The answers axe Situation Answer ($) Italler ty xpble Income is sylany_19.come 533):50 II 194gble income includes $2500 qualified Juulsenes I 5356.50 If tqxable income includes $ 12400 qualities sividends' 4303.50