FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question
gross income
MINUS
adjustments to
income
TABLE 4.9
Tax Rate
10%
15%
25%
28%
33%
35%
39.6%
Standard
EQUALS
adjusted gross
income
FIGURE 4.13 Flow chart showing the basic steps in calculating income tax.
deduction
Exemption
(per person)
adjusted gross
income
MINUS
deductions and
exemptions
$4050
EQUALS
taxable income
Single
up to $9325
up to $37,950
up to $91,900
up to $191,650
up to $416,700
up to $418,400
above $418,400
$6350
2017 Marginal Tax Rates, Standard Deductions,
and Exemptions*
Married Filing
Jointly
up to $18,650
up to $75,900
up to $153,100
up to $233,350
up to $416,700
up to $470,700
above $470,700
$12,700
tax computation
based on rates
or tables
3. Victor is in the 28% tax bracket.
MINUS
tax credits
$4050
EQUALS
total tax
Married Filing
Separately
up to $9325
up to $37,950
up to $76,550
up to $116,675
up to $208,350
up to $235,350
above $235,350
$6350
$4050
total tax
MINUS
payments or
withholding
EQUALS
amount owed
(or refund)
Head of
Household
up to $13,350
up to $50,800
up to $131,200
up to $212,500
up to $416,700
up to $444,550
$4050
above $444,550
$9350
*This table ignores (i) exemption and deduction phase-outs that apply to high-income taxpayers; (ii) the alterna-
tive minimum tax (AMT) that affects many middle- and high-income taxpayers; (iii) potential changes in tax law
made after this text was printed that may have changed the values given in this table for 2017.
Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the 15%
marginal rate affects income starting at $9325, which is where the 10% rate leaves off, and continuing up to
b. How much will a $900 charitable contribution save him if he itemizes his deductions?
expand button
Transcribed Image Text:gross income MINUS adjustments to income TABLE 4.9 Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard EQUALS adjusted gross income FIGURE 4.13 Flow chart showing the basic steps in calculating income tax. deduction Exemption (per person) adjusted gross income MINUS deductions and exemptions $4050 EQUALS taxable income Single up to $9325 up to $37,950 up to $91,900 up to $191,650 up to $416,700 up to $418,400 above $418,400 $6350 2017 Marginal Tax Rates, Standard Deductions, and Exemptions* Married Filing Jointly up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 tax computation based on rates or tables 3. Victor is in the 28% tax bracket. MINUS tax credits $4050 EQUALS total tax Married Filing Separately up to $9325 up to $37,950 up to $76,550 up to $116,675 up to $208,350 up to $235,350 above $235,350 $6350 $4050 total tax MINUS payments or withholding EQUALS amount owed (or refund) Head of Household up to $13,350 up to $50,800 up to $131,200 up to $212,500 up to $416,700 up to $444,550 $4050 above $444,550 $9350 *This table ignores (i) exemption and deduction phase-outs that apply to high-income taxpayers; (ii) the alterna- tive minimum tax (AMT) that affects many middle- and high-income taxpayers; (iii) potential changes in tax law made after this text was printed that may have changed the values given in this table for 2017. Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the 15% marginal rate affects income starting at $9325, which is where the 10% rate leaves off, and continuing up to b. How much will a $900 charitable contribution save him if he itemizes his deductions?
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education