Personal Finance (MindTap Course List)
13th Edition
ISBN: 9781337099752
Author: E. Thomas Garman, Raymond Forgue
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 4DTM
Use Tax Rate Schedule. Jared Goff, of Los Angeles, Determined the following tax information: gross salary, $160,000; interest earned, $2,000; IRA contribution, $5,000; personal exemption, $4,050; and itemized deductions, $8,000. Calculate Jared’s taxable income and tax liability filing single. (Hint: Use Table 4-2.)
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
FICA Taxes. For each of the following individuals, calculate the FICA taxes and income taxes to obtain the total tax owed. Then find the overall tax rate on the gross income, including both FICA income taxes. Assume that all the individuals are single and take the standard deduction. Use the tax rates on Table 4.9.
Jack earned a salary of $44,800 and received $1,250 in interest
The solution this problem FICA Tax = $3,427; Income tax = $4881; total tax = $8308; tax rate = 18.0%
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 womanearned a salary of $27,000 and received $1000 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.
Her income tax is $_____.
Determine the tax liability, marginal tax rate, and average tax rate in each of the following
cases. Use the tax tables to determine tax liability. Required: Married taxpayers, taxable
income of $97, 463. Married taxpayers, taxable income of $66,829. Note: For all
requirements, round "Average tax rate" to 2 decimal places.
Chapter 4 Solutions
Personal Finance (MindTap Course List)
Ch. 4.1 - Prob. 1CCCh. 4.1 - Prob. 2CCCh. 4.1 - Explain why some taxpayers have an effective...Ch. 4.2 - Prob. 1CCCh. 4.2 - Prob. 2CCCh. 4.2 - Prob. 3CCCh. 4.2 - Prob. 4CCCh. 4.2 - Prob. 5CCCh. 4.2 - Prob. 6CCCh. 4.2 - Prob. 7CC
Ch. 4.3 - Distinguish between two major types of...Ch. 4.3 - Prob. 2CCCh. 4.3 - Prob. 3CCCh. 4.3 - Prob. 4CCCh. 4 - Calculate Tax Liability. What would be the tax...Ch. 4 - Prob. 2DTMCh. 4 - Determine Tax Liability. Find the tax Liabilities...Ch. 4 - Use Tax Rate Schedule. Jared Goff, of Los Angeles,...Ch. 4 - Use Tax Rate Schedule. Carson Wentz, of...Ch. 4 - Review Figure 4-1 on page 117 and comment on the...Ch. 4 - The Johnsons Calculate Their Income Taxes Several...Ch. 4 - Prob. 2FPCCh. 4 - Prob. 3FPCCh. 4 - Prob. 4FPCCh. 4 - Taxable Versus Tax-Exempt Bonds Paxton Lynch,...Ch. 4 - Prob. 6FPCCh. 4 - Prob. 3BYOPFM
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the Tax Tables to compute tax liability. Required: a. Married taxpayers, who file a joint return, have taxable income of $32,366. b. Single taxpayer, has taxable income of $67,342. Note: For all requirements, round "Average tax rate" to 2 decimal places. Tax liability a. $ b. $ 3,474 14,336 Marginal tax rate 15 % 25 % Average tax rate. 12.13 % 21.28 %arrow_forwardUse the following information and the flow chart from the module to calculate: Adjusted gross income ( AGI) Taxable income Show your work for each calculation to receive full credit. An individual has the following information for the current tax year. Assume they do not itemize and they file as head of household. Income from wages, $80,000 Interest earned on savings, $150 IRA contribution, $5,000 Checking account interest earned, $75 Standard deduction for Head of Household: $20,800 Child and Dependent Care Tax credit, $3,000 Filing status: Head of Householdarrow_forwardYou determined the following tax information for yourself: Gross Salary: $160,000 Interest Earned: $2,000 IRA Contribution: $5,000 Standard Deduction: $12,400 Filing Single, calculate your taxable income and tax liability. Taxable Income: Tax Liability:arrow_forward
- Jared Goff, of LA, determined the following tax information:Gross Salary: $170,000, Interest Earned: $7,000, IRA, Contribution: $5,000, Standard Deduction: $12,200 Filing Single, calculate Jared's taxable income and tax liability. Tax Liability:arrow_forwardDeductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and has a gross income of $92,700. His allowable deductions for adjusted gross income are $4,200, and his itemized deductions are $18,350. The standard deduction for 2020 is $12,400. Round all final amounts to the nearest dollar. Refer to the Tax Rate Schedules to answer the following questions. a. Hangtao's taxable income is 70,150 v and his tax liability is $ for 2020. Feedback b. If Hongtao has $11,800 withheld from his salary during 2020 then Hongtao has a refund v of s Feedback c. Assume the same facts as in part a and part b, except that Hongtao is married. His wife's salary is $25,000, and she has $1,300 withheld from her paycheck. They file jointly. The standard deduction for 2020 is $24,800. Their taxable income is and their tax liability is $ for 2020. They will receive a refund v of $arrow_forwardUse the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000: Taxable income Up to $47,630 On the next $47,629 On the next $52,408 On the next $62,704 Over $210,371 Select one: Tax Rate 15% 20.5% Based on the above, the average tax rate (ATR) is closest to: a. 19.15% b. 19,45% c. 20.5% d. 26.0% 26% 29% 33%arrow_forward
- 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 $30,000 from wages. Tax Rate 10% Single 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 Exemption (per person) $6350 $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 FICA tax is $ (Round up to the nearest dollar.)arrow_forwardRequired: Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the appropriate Tax Tables and Tax Rate Schedules. a. Married taxpayers, who file a joint return, have taxable income of $39,821. b. Married taxpayers, who file a joint return, have taxable income of $63,790. (For all requirements, use the tax tables to compute tax liability. Round "Average tax rate" to 2 decimal places.) Tax liability Marginal tax rate Average tax rate a % b.arrow_forwardJared Goff, of LA, determined the following tax information:Gross Salary: $170,000Interest Earned: $7,000IRA Contribution: $5,000Standard Deduction: $12,200 Filing Single, calculate Jared's taxable income and tax liability. Tax Liability: blank1 - Numeric Answerarrow_forward
- Calculate Melissa Allen’s tax liability for taxable income of $59,580. She files single and claims 3 exemptions. (Use Table 7.3) (Round your final answer to the nearest cent.)arrow_forwardDetermine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the Tax Tables to compute tax liability. Required: Married taxpayers, who file a joint return, have taxable income of $97, 463. Married taxpayers, who file a joint return, have taxable income of $ 66,829. Note: For all requirements, round "Average tax rate" to 2 decimal places.arrow_forwardJared Goff, of Los Angeles, determined the following tax information: gross salary, $85,000; interest earned, $2,500; IRA contribution, $4,500; and standard deduction, $12,200. Filing single, calculate Jared's taxable income and tax liability.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
Understanding U.S. Taxes; Author: Bechtel International Center/Stanford University;https://www.youtube.com/watch?v=QFrw0y08Oto;License: Standard Youtube License