Question

Jonathan is a 35-year-old single taxpayer with adjusted gross income in 2018 of $46,300. He uses the standard deduction and has no dependents.

Table for the standard deduction

Filing Status 2018 Standard Deduction Single $ 12,000 Married, filing jointly 24,000 Married, filing separately 12,000 Head of household 18,000 Qualifying widow(er) 24,000

Click here to access the tax tables.

a. Calculate Jonathan's taxable income.
$

b. When you calculate Jonathan's tax liability are you required to use the tax tables or the tax rate schedule?

c. What is Jonathan's tax liability?
$

Answer 1

Solution:

Given that the following information about

Jonathan is a 35-year-old single taxpayer with adjusted gross income in 2018 of $46,300. He uses the standard deduction and has no dependents.

a. Calculate Jonathan's taxable income.

Taxable income = $ 46,300 - $ 12,000 = $ 34,300.

b. When you calculate Jonathan's tax liability are you required to use the tax tables or the tax rate schedule?

The tax table must be used unless the taxpayer's taxable income is $100,000 or more.

Tax tables are used.

c. What is Jonathan's tax liability?

15% of $ 34,300= $5,145.