Question

Problem 1-11
The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.7)

Christine is a single 50-year-old taxpayer with no dependents. Her only income is $40,750 of wages. Calculate her taxable income and her tax liability.

Table for the standard deduction

Filing Status Standard Deduction Single $ 12,200 Married, filing jointly 24,400 Married, filing separately 12,200 Head of household 18,350 Qualifying widow(er) 24,400

Click here to access the tax tables.

Taxable income: ?

Tax liability: ?

$

Answer 1

2019 federal income tax brackets
Calculation of total income and taxliability
Total Income		40750
Filing Status		Amount
Single
Total Income		40750
Less:Standard Deduction	-12200
	Taxable income	28550
	Tax Amount              =	(28550-9700)*12%+(9700)*10%
			3232
Married, filing jointly
Total Income		40750
Less:Standard Deduction	-24400
	Taxable income	16350
	Tax Amount              =	16350*10%
			1635
Married, filing separately
Total Income		40750
Less:Standard Deduction	-12200
	Taxable income	28550
	Tax Amount              =	(28550-9700)*12%+(9700)*10%
			3232
Head of household
Total Income		40750
Less:Standard Deduction	-18350
	Taxable income	22400
	Tax Amount              =	(22400-13850)*12%+(13850)*10%
			2411
Qualifying Widow (or Qualifying Widower)
Total Income		40750
Less:Standard Deduction	-24400
	Taxable income	16350
	Tax Amount              =	16350*10%
			1635
Qualifying Widow (or Qualifying Widower) is a filing status that allows you to retain the benefits of the Married Filing Jointly status for two years after the year of your spouse's death.