2013 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $8,

Question

2013 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $8,925 $8,925 - $36,250 $36,250 $87,850 $87,850 $183,250 $183,250 $398,350 $398,350 $400,000 Over $400,000 You Pay This Amount on the Base of the Bracket $0 892.50 4,991.25 17,891.25 44,603.25 115,586.25 116,163.75 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 24.3 29.0 29.0 39.6 Standard deduction for individual: $6,100 Married Couples Filing Joint Returns If Your Taxable Income Is Up to $17,850 $17,850 $72,500 $72,500 $146,400 $146,400 - $223,050 $223,050 $398,350 $398,350 $450,000 Over $450,000 You Pay This Amount on the Base of the Bracket $0 1,785.00 9,982.50 28,457.50 49,919.50 107,768.50 125,846.00 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 19.4 22.4 27.1 28.0 39.6 Standard deduction for married couples filing jointly: $12,200

Explanation / Answer

Let us first calculate the Taxable Income of Jenna [Single Individual Taxpayer] from her total yearly income for 2013 to ascertain the tax bracket in which she falls.. Then we can ascertain the taxation rates to be applied on her Taxable Income.

$105000 - Personal Exemption Deduction of $3900= $101100

$101100 - Standard Deduction for Individuals of $6100= $95000 => this is her 2013 Taxable Income

As per her Taxable Income amount, she falls in the tax bracket: $87850 - $183250

Her Income Tax Liability= $17891.25 + 28% of ($95000 - $87850) + 15% of $7900

Note: 15% is Long-Term Capital Gains Tax for Individuals corresponding to their marginal ordinary income tax rate [28% in this case]; this tax is for the common stock that she sold during the year after holding it for long-term period of 5 years.

Her Income Tax Liability which she owes to th IRS= $17891.25 + $2002 + $1185= $21078.25 [Answer]

Unable to answer second question pertaining to Corporation Taxation because am unable to use drop down menus despite tapping my PC mouse on them. Hence unable to look at the drop-down menu list to select from..

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