Musashi is getting ready to do his taxes. He is single and lives in San Diego. M
ID: 1109596 • Letter: M
Question
Musashi is getting ready to do his taxes. He is single and lives in San Diego. Musashi earned $100000 in taxable income in 2015. He reviews the following table, which shows the IRS tax rates for a single taxpayer in 2015.Up to $9,225 10.0 From $90,750 to $189,300 39.6 in income taxes for 2015. , based on the annual income level and the amount of taxes he owes for 2015. 18,481.25 Musashi decides to ask an accountant for tax advice. The accountant cdaims that he has federal government. found a legal $21,071.2 pay to learn this strategy and reduce his taxable income by $2,000 is $28,000.00
Explanation / Answer
a) Marginal tax rate for Musashi is 28%. (His maximum income falls in the slab of 28%)
b) Musashi owes a total amount of 21,071.25 to tax authorities.
c) Average tax rates for Mushashi is 21%.
d) Maximum amount Mushashi can pay to the accountant to reduce his tax by 2000 is 2000 only. Paying anything more than 2000 will be a loss for Musashi.
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