Calculation of Social Security Tax and Marginal, Average and Effective Tax Rates (LO. 1) In 2020, Rory earns $70,000 per year as a college professor, paying $5,891 in federal income taxes. Latesia is a marketing executive with a salary of $140,000 who paid $21,919 in federal taxes. In addition, Latesia collected $50,000 on a life insurance policy. Both taxpayers are single and take the 2020 standard deduction. Compute the following for the two taxpayers. Note: Round the total taxes to two decimal places. Enter percentages to one decimal. a. With respect to the FICA taxes, calculate their total FICA liability. Hint: OASDI: 6.2% with a cap of $137,700; MHI: 1.45% d. Based on the data provided, compute Rory and Latesia's effective FICA tax rate for 2020. Rory's effective tax rate: 7.65 V % Latesia's effective tax rate: X %

Calculation of Social Security Tax and Marginal, Average and Effective Tax Rates (LO. 1) In 2020, Rory earns $70,000 per year as a college professor, paying $5,891 in federal income taxes. Latesia is a marketing executive with a salary of $140,000 who paid $21,919 in federal taxes. In addition, Latesia collected $50,000 on a life insurance policy. Both taxpayers are single and take the 2020 standard deduction. Compute the following for the two taxpayers. Note: Round the total taxes to two decimal places. Enter percentages to one decimal. a. With respect to the FICA taxes, calculate their total FICA liability. Hint: OASDI: 6.2% with a cap of $137,700; MHI: 1.45% d. Based on the data provided, compute Rory and Latesia's effective FICA tax rate for 2020. Rory's effective tax rate: 7.65 V % Latesia's effective tax rate: X %

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 44P

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