Which of the following does NOT accurately describe the calculation of federal tax payable for individuals?...
Which of the following does NOT accurately describe the calculation of federal tax payable for individuals?
A.
There are currently five federal tax brackets, with rates ranging from 15% to 33%.
B.
Progressive tax rates are applied to brackets (or marginal increments) of taxable income.
C.
The federal tax rates are marginal, meaning that once taxable income reaches the next tax bracket, all of the individual's taxable income is taxed at the higher rate.
D.
The federal tax brackets are indexed to the Consumer Price Index to account for inflation.
Homework Answers
| The federal tax rates are marginal, meaning that once taxable income reaches the next tax bracket, all of the individual's taxable income is taxed at the higher rate is not accurate. |
| Once taxable income reaches the next tax bracket, only the portion of taxable income within the next bracket is taxed at the higher rate. |
| The current rate for individuals range from 15% to 33%. Progressive tax rates are applied to the taxable income within the tax bracket. |
| Option C is correct |
Add Answer to:
Which of the following does NOT accurately describe the
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2018 Individual Tax Rates Single Individuals If Your Taxable Income Is You Pay This Amount on...
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...
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Susan and Stan Britton are a married couple who file a joint income tax return, where...
Susan and Stan Britton are a
married couple who file a joint income tax return, where the tax
rates are based on the tax table 3.5. Assume that their taxable
income this year was $364,000. Do not round intermediate
calculation.
What is their federal tax liability? Round your answer to the
nearest dollar.
$
What is their marginal tax rate? Round your answer to the
nearest whole number.
%
What is their average tax rate? Round your answer to two...
2013 Individual Tax Rates Single Individuals Average Tax Rate at Top of Bracket 10.0% 13.8 If...
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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...
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Susan and Stan Britton are a
married couple who file a joint income tax return, where the tax
rates are based on the tax table 3.5. Assume that their taxable
income this year was $364,000. Do not round intermediate
calculation.
What is their federal tax liability? Round your answer to the
nearest dollar.
$
What is their marginal tax rate? Round your answer to the
nearest whole number.
%
What is their average tax rate? Round your answer to two...
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