Assume the following tax code for a married couple: 15% up to $24, 300; 28% between $24,300 and $47,500; and 31% above $47,500. What is the tax payable on an income of $118,000 (rounded to the nearest dollar)? Group of answer choicesa)$27,475b)$31,996c) $24, 300d)$8,750

Step 1: Break down the income into the different tax brackets: $0 - $24,300: taxed at 15% $24,301 -…

Answered: Assume the following tax code for a…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 19CE

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Melodie's taxable income is $39,000 and she pays income tax of $4,489. If Melodie's taxable income increases to $41,000, she would pay income taxes of $4,884. What is Melodie's marginal tax rate? 19.75 22.00 18.50 12.00 Some other amount
Lisa records nonrefundable Federal income tax credits of 65,000 for the year. Her regular income tax liability before credits is 190,000, and her TMT is 150,000. a. What is Lisas AMT? b. What is Lisas regular income tax liability after credits?
Compute the 2019 tax liability and the marginal and average tax rates for the following taxpayers (use the 2019 Tax Rate Schedules in Appendix A for this purpose): a. Chandler, who files as a single taxpayer, has taxable income of 94,800. b. Lazare, who files as a head of household, has taxable income of 57,050.
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Given the following tax structure, Taxpayer Salary Total tax $21,500 $1,032 $46,000 ??? Mae Pedro a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.) Minimum tax b. This would result in what type of tax rate structure? Tax rate structure
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Using the tax table, determine the amount of federal taxes for the following situations: a. A head of household with taxable income of $66,500. b. A single person with taxable income of $42,700. c. Married taxpayers filing jointly with taxable income of $81,800. Note: For all the requirements, round your intermediate calculations and final answer to the nearest whole dollar. a. Tax amount b. Tax amount c. Tax amount
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For the person below, calculate the FICA tax and income tax to obtain the total tax owed. Then find the overall tax rate on the gross income, including both FICA and income tax. Assume that the individual is single and takes the standard deduction. A man earned a salary of $27,000 and received $1250 in interest. Tax Rate Single 10% up to $9325 15% up to $37,950 25% up to $91,900 28% up to $191,650 33% up to $416,700 35% up to $418,400 39.6% above $418,400 Standard deduction $6350 Exemption (per person) $4050 Let FICA tax rates be 7.65%on the first $127,200 of income from wages, and 1.45% on any income from wages in excess of $127,200. His total FICA tax is $____.
Given the following tax structure: Taxpayer Mae Pedro Salary $ 42,000 $ 66,000 Total tax $ 1,680 ??? a. What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? (Round your final answer to nearest whole dollar amount.)
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A married couple are calculating their federal income tax using the tax rate tables: If Taxpayer's Income Is... Then Estimated Taxes Are... Between But Not Over Base Tax + Rate Of the Amount Over $0 $16,700 $0 10% $0 $16,700 $67,900 $1,670.00 15% $16,700 $67,900 $137,050 $9,350.00 25% $67,900 $137,050 $208,850 $26,637.50 28% $137,050 $208,850 $372,950 $46,741.50 33% $208,850 $372,950 - - - - - $100,894.50 35% $372,950 How much tax will they have to pay on their taxable income of $112,000?

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Assume the following tax code for a married couple: 15% up to $24, 300; 28% between $ 24,300 and $47,500; and 31% above $47,500. What is the tax payable on an income of $ 118,000 (rounded to the nearest dollar)? Group of answer choices a)$27,475 b)$31,996 c) $24, 300 d)$8,750