Procedure and Analysis: 1. For taxable incomes of $100,000 or less, the 1040 Forms & Instructions booklet displays tax tables with the income tax previously calculated for the applicable income level (up to $100,000) and the filing status. Locate a copy of the tax tables on the Internet with the search keywords "2009 1040 tax tables" or from the Forms and Publications link found at the website www.irs.gov. Using $100,000 as a taxable income, find the income tax for a couple (married and filing jointly) in the published tax tables. Record your results. a. Total Income Tax (based on 2009 IRS Tax Tables) = $_ b. Now, calculate the income tax on the very same $100,000 taxable income using the computations described in unit 4-E. Use the framework below to aid in your calculations: Tax Computation Tax Rate 10% 15% 25% Married Filing Jointly up to 16,700 up to 67,900 up to 137,050 Total Income Tax: c. Should your answers for Parts (a) and (b) match exactly? Explain why or why not?

Procedure and Analysis: 1. For taxable incomes of $100,000 or less, the 1040 Forms & Instructions booklet displays tax tables with the income tax previously calculated for the applicable income level (up to $100,000) and the filing status. Locate a copy of the tax tables on the Internet with the search keywords "2009 1040 tax tables" or from the Forms and Publications link found at the website www.irs.gov. Using $100,000 as a taxable income, find the income tax for a couple (married and filing jointly) in the published tax tables. Record your results. a. Total Income Tax (based on 2009 IRS Tax Tables) = $_ b. Now, calculate the income tax on the very same $100,000 taxable income using the computations described in unit 4-E. Use the framework below to aid in your calculations: Tax Computation Tax Rate 10% 15% 25% Married Filing Jointly up to 16,700 up to 67,900 up to 137,050 Total Income Tax: c. Should your answers for Parts (a) and (b) match exactly? Explain why or why not?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter3: Taxes On The Financial Statements

Section: Chapter Questions

Problem 13P

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