Please write in MATLAB code
Write a program that can calculate the amount of federal tax a person owes for the upcoming year. After calculating the amount of tax owed, you should report to the user their filing status (single/joint), which tax rate they fell under, as well as the tax owed. Example: “As a single filer you fell under 12% tax bracket and you owe $3500.” Disclaimer: This example is simplified and is not intended to be an accurate representation of how to calculate your taxes. 1. Your program should ask the user if they are a single filer, or if they will be filing jointly with their spouse. If they file single, ask the user to input their total income for the year. If they file jointly then have the user enter both their income as well as their spouse’s income. (You can then add the 2 incomes together to obtain gross household income.) 2. Your program should also check to see if the person is eligible for the Earned Income Credit (EIC). EIC eligibility is dependent upon both filing status as well as number of dependents. Therefore, ask the user to enter how many children (dependents) they have. Assume that if the person is eligible then the EIC deducts 8% from the gross income, so that only 92% of the gross income is now taxable. (The EIC will reduce the amount of income which is taxable, but does not change the person’s tax bracket. Ex: If the person made $40,000 (single) then they are in the 22% bracket. The EIC makes their taxable income 40,000*0.92 = $36,800. This new total is within the 12% bracket, but the person still owes 22% of the $36,800.
Earned Income Credit Limits
Filing Status | Income Limit if No Children | Income Limit if 1 Child | Income Limit if 2 Children | Income Limit if 3+ Children |
Single | $15,270 | $40,320 | $45,802 | $49,194 |
Married Joint | $20,950 | $46,010 | $51,492 | $54,884 |
tax bracket for single filers
Tax Rate | Taxable Income Bracket | Tax Owed |
10% | $0 to $9,525 | 10% of taxable income |
12% | $9,526 to $38,700 | $952.50 plus 12% of the amount over $9,525 |
22% | $38,701 to $82,500 | $4,453.50 plus 22% of the amount over $38,700 |
24% | $82,501 to $157,500 | $14,089.50 plus 24% of the amount over $82,500 |
32% | $157,501 to $200,000 | $32,089.50 plus 32% of the amount over $157,500 |
35% | $200,001 to $500,000 | $45,689.50 plus 35% of the amount over $200,000 |
37% | $500,001 or more | $150,689.50 plus 37% of the amount over $500,000 |
Tax bracket for joint filers
Tax Rate | Taxable Income Bracket | Tax Owed |
10% | $0 to $19,050 | 10% of taxable income |
12% | $19,051 to $77,400 | $1,905 plus 12% of the amount over $19,050 |
22% | $77,401 to $165,000 | $8,907 plus 22% of the amount over $77,400 |
24% | $165,001 to $315,000 | $28,179 plus 24% of the amount over $165,000 |
32% | $315,001 to $400,000 | $64,179 plus 32% of the amount over $315,000 |
35% | $400,001 to $600,000 | $161,379 plus 35% of the amount over $400,000 |
37% | $600,001 or more | $161,379 plus 37% of the amount over $600,000 |
MATLAB Code:
% Federal tax calculation
% Reading Filing status
filingType = input("\n Selecct Filing Type: 1-Single 2-Married
Joint: ");
income = 0;
% Reading income
if filingType == 1
income = input("\n Input your income $");
else
fincome = input("\n Input your income $");
sincome = input("\n Input your spouse income
$");
income = fincome + sincome;
end % If end
% Reading number of dependants
dependants = input("\n Specify number of dependants: ");
EIC = false;
% Checking for EIC Eligibility
if filingType==1
if dependants == 0 && income <=
15270
EIC = true;
elseif dependants == 1 && income <=
40320
EIC = true;
elseif dependants == 2 && income <=
45802
EIC = true;
elseif dependants >= 3 && income
<= 49194
EIC = true;
else
EIC = false;
end % If
end
elseif filingType == 2
if dependants == 0 && income <=
20950
EIC = true;
elseif dependants == 1 && income <=
46010
EIC = true;
elseif dependants == 2 && income <=
51492
EIC = true;
elseif dependants >= 3 && income
<= 54884
EIC = true;
else
EIC = false;
end % If end
end % If end
incomeCalc = income;
% Updating income if EIC is elegible
if EIC == true
incomeCalc = income *0.92;
end
tax=0;
taxRate=0;
% Checking tax rate
if filingType == 1
if income >=0 && income <=
9525
tax = (incomeCalc *
0.10);
taxRate=10;
elseif income >=9526 && income <=
38700
tax = 952.50 +
((incomeCalc-9525) * 0.12);
taxRate = 12;
elseif income >=38701 && income <=
82500
tax = 4453.50 +
((incomeCalc-38700) * 0.22);
taxRate = 22;
elseif income >=82501 && income <=
157500
tax = 14089.50 +
((incomeCalc-82500) * 0.24);
taxRate = 24;
elseif income >=157501 && income
<= 200000
tax = 32089.50 +
((incomeCalc-157500) * 0.32);
taxRate = 32;
elseif income >=200001 && income
<= 500000
tax = 45689.50 +
((incomeCalc-157500) * 0.35);
taxRate = 35;
elseif income >=500000
tax = 150689.50 +
((incomeCalc-500000) * 0.37);
taxRate = 37;
end
elseif filingType == 2
if income >=0 && income <=
19050
tax = (incomeCalc *
0.10);
taxRate=10;
elseif income >=19051 && income <=
77400
tax = 1905 +
((incomeCalc-19050) * 0.12);
taxRate = 12;
elseif income >=77401 && income <=
16500
tax = 8907 +
((incomeCalc-77400) * 0.22);
taxRate = 22;
elseif income >=165001 && income
<= 315000
tax = 28179 +
((incomeCalc-16500) * 0.24);
taxRate = 24;
elseif income >=315001 && income
<= 400000
tax = 64179 +
((incomeCalc-315000) * 0.32);
taxRate = 32;
elseif income >=400001 && income
<= 600000
tax = 161379 +
((incomeCalc-400000) * 0.35);
taxRate = 35;
elseif income >=600000
tax = 161379 +
((incomeCalc-600000) * 0.37);
taxRate = 37;
end
end % If end
% Printing result
if filingType == 1
fprintf("\n As a single filer you fell under
%d%% tax bracket and you owe $%.2f. \n", taxRate, tax);
else
fprintf("\n As a Married Joint filer, you fell
under %d%% tax bracket and you owe $%.2f. \n", taxRate, tax);
end % If end
____________________________________________________________________________________
Sample Run:
Please write in MATLAB code Write a program that can calculate the amount of federal tax...
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