Do the Math 4-6 How Your Income Is Really Taxed Victoria Bassett is from Eau Claire, Wisconsin and she has a $61,000 gross income in 2016. What amount of taxes on a gross income will she pay? (Hint: Use Table 4-1.) Round your answer for tax liability to the nearest cent, answer for an average tax rate to two decimal places and answer for a marginal tax rate to the nearest whole number. She paid $ in taxes on a gross income. An average tax rate would be percent on gross income. A marginal tax rate would be percent. 25

Do the Math 4-6 How Your Income Is Really Taxed Victoria Bassett is from Eau Claire, Wisconsin and she has a $61,000 gross income in 2016. What amount of taxes on a gross income will she pay? (Hint: Use Table 4-1.) Round your answer for tax liability to the nearest cent, answer for an average tax rate to two decimal places and answer for a marginal tax rate to the nearest whole number. She paid $ in taxes on a gross income. An average tax rate would be percent on gross income. A marginal tax rate would be percent. 25

Fundamentals of Financial Management, Concise Edition (MindTap Course List)

9th Edition

ISBN:9781305635937

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 8P: PERSONAL TAXES Susan and Stan Britton are a married couple who file a joint income tax return, where...

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PERSONAL TAXES Joe and Jane Keller are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was 165,000. a. What is their federal tax liability? b. What is their marginal tax rate? c. What is their average tax rate?
Janet is getting ready to do her taxes. She is single and lives in Denver. Janet earned $110,000 in taxable income in 2015. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2015. On Annual Taxable Income... The Tax Rate Is... (Percent) Up to $9,225 10.0 From $9,225 to $37,450 15.0 From $37,450 to $90,750 25.0 From $90,750 to $189,300 28.0 From $189,300 to $411,500 33.0 From $411,500 to $413,200 35.0 Over $413,200 39.6 Based on the IRS table, Janet calculates that her marginal tax rate is when her annual taxable income is $110,000. Janet calculates that she owes in income taxes for 2015. Janet then calculates that her average tax rate is , based on the annual income level and the amount of taxes she owes for 2015. After figuring out what she owes in taxes in 2015, Janet decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter…
Victoria Bassett is from you Claire Wisconsin and she has $61,000 gross income in 2016 what amount of taxes on gross income will she pay.
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1. Calculate the taxes and average tax rate for a married couple family of four in the 15 percent bracket with a gross income of $63,000 (close to the national median for a family of four) with $4000 in IRA contributions, a standard deduction of $12,600, $16,200 for four exemptions and two child tax credits of $1000 each. You need to show the details of your calculations in order to receive full credit for this question. (Hint: use Table 4-3 to calculate the taxes, and refer to "Advice from a Seasoned Pro" in section 4.1d to see how the average tax rate is calculated.) 2. What is the marginal tax bracket? Explain why some taxpayers have an effective marginal tax rate as high as 40 percent? Does this mean they pay 40% of their taxable income in taxes?
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