Ans-a-
Particulars | Amount ($) |
Salary | 65,000 |
Business Income | 22,000 |
Interest Income for taxable bonds | 12,000 |
Total Income (A) | 99,000 |
Deductions:- | |
Business Expenses | 11,500 |
Itemized deductions | 15,000 |
Total deductions (B) | 26,500 |
Taxable Income (A)-(B) | 72,500 |
Tax Rate | 22% |
Tax | $11,890 |
Tax Computation
Particulars | Income | Rate | Tax |
For First | $9,525 | 10% | $952.50 |
Next ($38,700-$9,525) | $29,175 | 12% | $3,501 |
Final Amount ($72,500-$38,700) | $33,800 | 22% | $7,436 |
$72,500 | $11,889.50 or $11,890 |
Ans-b-
Marginal Rate | 22% | (From Tax Rate Schedule) |
Average Tax Rate | 16.4% | ($11,890/ $72,500) |
Effective Tax Rate | 12.9% | ($11,890/ ($99,000+$4,700-$11,500)) |
Ans-c-
The marginal tax rate is most important for tax planning purposes because tax planning is done at the margin and an appropriate marginal tax rate yields that how much a tax payer can save through tax planning.
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Linette, a single taxpayer, had the following income and deductions for the tax year 2018 EEB...
Linette, a single taxpayer, had the tollowing income and deductions tor the tax year 2018: C ck the icon to view the income and deductions. Click the icon to v ew the standard deduction amounts 을 (Cick the con to ew the 2018 tax rate schedule or he Single ng status. Read the requirements Requirement a. Compute Linette's taxable income and federal tax liability for 2018. First calculate the gross income, then calculate taxable income and the federal tax liability....
Loriann, a single taxpayer, had the following income and deductions for the tax year 2018: ick he icon to view he income and deductions Click the con towe w the standard deduction amounts ick the con to view the 2018 tax rate schedule for the Single ling status Read the requirements Requirement a. Compute Loriann's taxable income and federal tax liabilty for 2018 First calculate the gross income, then calculale taxable income and the federal tax iability. (Calculate the tax...
Sharon and Tray are married, have two dependent children, and file a joint return in 2018. If they have adjusted gross income (AGI) of $80,000 and itemized deductions of $8,500, what is their taxable income for 2018? (Click the icon to view the standard deduction amounts.) (If an input field is not used, leave the input field(s) empty. Do not select a label or enter a zero.) Adjusted gross income Minus: Standard deduction 80,000 (24,000) 56,000 Taxable income STANDARD DEDUCTION...
Pl:2-30 (similar to) The following information relates to Frank, a single taxpayer, age 18: E: (Click the icon to view the information.) 5 (Click the icon to view the standard de Read the requirements. Requirement a. Compute Frank's taxable income assuming he is self-supporting. (Complete all input fields. For amounts of zero or less, enter "0" in the appropriate cell.) 0 Reference Adjusted gross income Minus: STANDARD DEDUCTION Taxable income i Data Table Filing Status Married individuals filing joint returns...
Please help. Sarah and Ted are married, have four dependent children, and file a joint return in 2018. If they have adjusted gross income (AGI) of $94,000 and itemized deductions of $8,000, what is theirtaxable income for 2018? (Click the icon to view the standard deduction amounts) (If an input field is not used, leave the input field(s) empty. Do not select a label or enter a zero.) Minus Taxable income STANDARD DEDUCTION Filing Status Married individuals filing joint returns...
has $54,000 AGI for the year Begin by calculating the temized deductions (Complete all niput fields Enter a or it hore is no deduction for excess medical expenses) deductions What is the amount of Dan's taxable income? Minus: xcess Total itemized deductions Now compute Dan's taxable income Minus: Deductions from AGI Taxable income Choose from any list or enter any number in the input fields and then continue to the next question. STANDARD DEDUCTION Filing Status Married individuals filing joint...
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has $54,000 AGI for the year Begin by calculating the temized deductions (Complete all niput fields Enter a or it hore is no deduction for excess medical expenses) deductions What is the amount of Dan's taxable income? Minus: xcess Total itemized deductions Now compute Dan's taxable income Minus: Deductions from AGI Taxable income Choose from any list or enter any number in the input fields and then continue to the next question. STANDARD DEDUCTION Filing Status Married individuals filing joint...
Jan is a single, cash-method taxpayer. On April 11 2018, Joyce paid $140 in state income taxes with her 2017 state income tax return. During 2018 Jan had $2,000 in state income taxes withheld. On April 13, 2019, Jan paid $250 with her 2018 state tax return. During 2019 she had $2,600 in state income taxes withheld from her paycheck. Upon filing her 2019 tax return on April 15, 2020 she received a refund of $350 for excess state income...
I need taxable income During 2019, Amy sustains serious injuries from a snow-skiing accident. She incurs the following expenses: (Click the icon to view expenses incurred.) i (Click the icon to view more information.) Begin by determining the excess medical expenses and the total itemized deductions. (lf a box is not used in Medical expenses Less Deductible medical expenses Total itemized deductions Item Amount $ Doctor bills 10,500 Hospital bills 9,400 Legal fees in suit against ski resort 3,000 Amy...