ne the amount of tax liability in each of the following instances: Use the a a.
ID: 2336180 • Letter: N
Question
ne the amount of tax liability in each of the following instances: Use the a a. A married couple filing jointly with taxable income of $33,891 b. A married couple filing jointly with taxable income of $205,775 d. A single person with taxable income of $80,336 e. A single person with taxable income of $317,953 f. A head of household with taxable income of $97492 g. A qualifying widow with taxable income of $29.238. h. A married couple filing jointly with taxable income of $12,116 couple filing separately, one spouse with taxable income of $44785 and the other with $57,118 (For all requirements, use the Tax Tables for taxpayers with taxable income under $100,000 and the Tex Rate Schedules for those with toxable income above $100,000.) Complete this question by entering your answers in the tabs below. Req a and tb Req cRea d to h a. A married couple filing jointly with taxable income of $33,891. b. A married couple filing jointly with taxable income of $205,775. (Round your intermediate computations to two decimal places and final answer to the nearest dollar amount.) Show lessA Tax liability b. Req c >Explanation / Answer
I am using tax rate of year 2018 for computing tax liability in each part of this question.
a) Taxable income of Married Couple = $33,891
Relevant Marginal Tax rate = 12% of taxable income
Tax Liability = ($19,050*10%)+($33,891-$19,050)*12%
= $1,905+$1,781 = $3,686
b) Taxable income of Married Couple = $205,775
Relevant Marginal Tax rate = 24% of taxable income
Tax Liability = $28,179+[($205,775-$165,000)*24%]
= $28,179+$9,786 = $37,965
c) Marginal tax rate of both spouses filling seperately = 22%
Tax liability of one spouse = $4,453.50+[($44,785-$38,700)*22%]
= $4,453.50+$1,338.70 = $5,792.20
Tax liability of other spouse = $4,453.50+[($57,118-$38,700)*22%]
= $4,453.50+$4,051.96 = $8,505.46
Total tax liability of the married couple = $5,792.20+$8,505.46 = $14,297.66 or $14,298 rounded off.
d) Marginal Tax rate of single person = 22%
Tax liability = $4,453.50+[($80,336-$38,700)*22%]
= $4,453.50+$9,159.92 = $13,613.42 or $13,613 rounded off
e) Marginal Tax rate of single person = 35%
Tax liability = $45,689.50+[($317,953-$200,000)*35%]
= $45,689.50+$41,283.55 = $86,973.05 or $86,973 rounded off
f) Marginal Tax rate of Head of Household = 24%
Tax Liability = $12,698+[($97,492-$82,500)*24%]
= $12,698+$3,598 = $16,296
g) Marginal Tax rate of Qualified Widow = 12%
Tax Liability = $1,905+[($29,238-$19,050)*12%]
= $1,905+$1,223 = $3,128
h) Marginal Tax rate of Married couple filling jointly = 10%
Tax Liability = $12,116*10% = $1,212
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