FEDERAL PAYROLL TAXESBracket ($)0-9,7009,701 - 39,47539,476-84,20084,201 - 160,725160,726 - 204,100204,101 - 510,300510,301 -Marginal Tax Rate10%12%22%24%32%35%37%TABLE 1: 2019 single taxpayer brackets and ratesExercise 1: Suppose your taxable income is $50,000. Compute your federal income tax.Individual TaxpayersIncome Tax Bracket ($)0-9,7009,701 - 39,47539,476 - 84,20084,201 - 160,725160,726 - 204,100204,101 - 510,300510,301 -Taxes Owed10% within bracket$970 + 12% within bracket$4,543 + 22% within bracket$14,382.50 +24% within bracket$32,738.50 +32% within bracket$46,628.50 +35% within bracket$153,798.50 +37% within bracketTABLE 2: 2019 tax bracketsExercise 2: Your taxable income is $50,000. Use Table 2 to recompute your federal income tax.Exercise 3: Your taxable income is $50,000. Compute your effective tax rate

Taxable Income= 50000$for first 9700$= 9700*10%=970$for next 29775$=29745*12%=3573$for next…

Answered: federal income tax.

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

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Question

FEDERAL PAYROLL TAXES
Bracket ($)
0-9,700
9,701 - 39,475
39,476-84,200
84,201 - 160,725
160,726 - 204,100
204,101 - 510,300
510,301 -
Marginal Tax Rate
10%
12%
22%
24%
32%
35%
37%
TABLE 1: 2019 single taxpayer brackets and rates
Exercise 1: Suppose your taxable income is $50,000. Compute your federal income tax.
Individual Taxpayers
Income Tax Bracket ($)
0-9,700
9,701 - 39,475
39,476 - 84,200
84,201 - 160,725
160,726 - 204,100
204,101 - 510,300
510,301 -
Taxes Owed
10% within bracket
$970 + 12% within bracket
$4,543 + 22% within bracket
$14,382.50 +24% within bracket
$32,738.50 +32% within bracket
$46,628.50 +35% within bracket
$153,798.50 +37% within bracket
TABLE 2: 2019 tax brackets
Exercise 2: Your taxable income is $50,000. Use Table 2 to recompute your federal income tax.
Exercise 3: Your taxable income is $50,000. Compute your effective tax rate

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