Question

Emily, who is single, has been offered a position as a city landscape consultant. The position pays $151,400 in cash wages. Assume Emily has no dependents. Emily deducts the standard deduction instead of itemized deductions, and she is not eligible for the qualified business income deduction. (Use the tax rate schedules.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Individuals

Schedule X-Single

If taxable income is over:	But not over:	The tax is:
$          0	$    9,875	10% of taxable income
$    9,875	$ 40,125	$987.50 plus 12% of the excess over $9,875
$ 40,125	$ 85,525	$4,617.50 plus 22% of the excess over $40,125
$ 85,525	$163,300	$14,605.50 plus 24% of the excess over $85,525
$163,300	$207,350	$33,271.50 plus 32% of the excess over $163,300
$207,350	$518,400	$47,367.50 plus 35% of the excess over $207,350
$518,400	—	$156,235 plus 37% of the excess over $518,400

b-1. Suppose Emily receives a competing job offer of $142,000 in cash compensation and nontaxable (excluded) benefits worth $9,400. What is the amount of Emily’s after-tax compensation for the competing offer?

Answer 1

b-1.		Description	Amount $
	1	Gross Income	142,000
	2	For AGI Deductions	-
	3	Adjusted gross income	142,000
	4	Standard deduction	12,400
	5	Taxable Income	129,600
	6	Income tax laibility	25,184	=14605.5+((129600-85525)*24%)
		Emily's After tax compensation	$ 126,216	=142000+9400-25184