Chapter6: Business Expenses
Section: Chapter Questions
Problem 51P
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Fast pls i will give u like for sure solve this question correctly in 5 min pls
Transcribed Image Text:In the United States, individuals pay taxes on their taxable income. The amount of tax payable depends on the amount of taxable income the person has
generated during a calendar year. The tax table below shows the federal income taxes payable for 2021. The tax rates range from 10% to 37% based on
income levels. Lower tax rates apply to lower levels of income. As income levels increase, so does the tax rate for the additional income amounts.
In addition, different tax rates apply depending on the person's status. The five filing statuses are single, married filing jointly, married filing separately.
head of household, and qualifying widow(er) with dependent child.
The table below shows the federal tax rates that apply to persons who are single. For the first $9.950 of taxable income, the single person would pay
10% in taxes. For example, if they made $5,000, they would pay $500 in taxes.
For any income over $9,950, the person would pay a base amount of tax PLUS an additional amount calculated by a marginal tax rate.
2021 Tax Rate Schedule
TAXABLE INCOME (1)
NOT OVER
OVER
SINGLE
10
$0.950
140.525
106.375
$104.300
1200.425
$23.600
10.000
140.625
500.375
$164.325
1200.425
$23.000
BASE
AMOUNT OF
TAX PLUS
.
10 .
1000
$4.004 .
$14.751 .
$33.000 .
MYM)
$157,80425 .
.
MARGINAL
TAX
BATE
OF THE
AMOUNT
OVER
50
10.0
12.0 $0.950
220 $40.525
340 100.375
12.0 610432
160 $200.425
370 1521.000
Use the table above to calculate the following three questions. An example has been completed for you.
Example
Based on the table, how much federal tax will a single person who earns $45,000 pay?
Answer: $5,648
The person is in the $40,525 $86,375 tax bracket
. $14.751 is payable for the first $40,525
$45,000-$40,525 $4,475 remaining
. $985 are payable in addition for the $4,475 in income above $40,525 ( 22% tax rate: $4,475 0.22 = $085)
$4,664+ $084 $5,649 total payable in taxes
"
Transcribed Image Text:How much federal tax will a single person who earns $435,000 pay?
$126,794
$47,843
$225,575
$209,425
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT