Ahmed is self-employed. He has a revenue of $170,000. His expenses for the year is $50,000. The following are the prevailing Income Tax slabs: Up to $9,525 10% $9,525 – $38,700 12% $38,700 – $82,500 22% $82,500 – $157,500 24% $157,500 – $200,000 32% $200,000 – $500,000 35% Above $500,000 37% If he received $12,000 in tax deduction, what is his taxable income for the year? How much did he pay in federal income tax?

Ahmed is self-employed. He has a revenue of $170,000. His expenses for the year is $50,000. The following are the prevailing Income Tax slabs: Up to $9,525 10% $9,525 – $38,700 12% $38,700 – $82,500 22% $82,500 – $157,500 24% $157,500 – $200,000 32% $200,000 – $500,000 35% Above $500,000 37% If he received $12,000 in tax deduction, what is his taxable income for the year? How much did he pay in federal income tax?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 21P

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