Sheila, a single taxpayer, is a retired computer executive with a taxable income

Question

Sheila, a single taxpayer, is a retired computer executive with a taxable income of $129,600 in the current year. She receives $33,900 per year in tax-exempt municipal bo interest. Adam and Tanya are married and have no children. Adam and Tanya's $129,600 taxable income is comprised solely of wages they earn from their jobs. Do not round intermediate computations. Round your final answers to the nearest dollar. Assume that Adam and Tanya file jointly. Sheila's tax is {??0x X . Adam and Tanya's tax is

Explanation / Answer

1. Shell's Tax :

Net Taxable Income = $1,29,600 - $33,900

= $ 95,700.

Tax Payable = $ 18713.75 + 28 % ($95,700 - $91,900)

= $ 18713.75 + $1064

= $ 19,777.95.

2. Adam and Tanya's Jointly :

Taxable Income = $ 1,29,600

Tax Payable = $ 10,452.50 + 25% ($ 1,29,600 - $ 75,900)

= $ 10,452.50 + $ 13,425

= $ 23,877.50  

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.