List and briefly explain five (5) categories of tax-free (or “tax-deferred,” if you prefer) income or gain that individuals can realize. Length – around 300 words
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List and briefly explain five (5) categories of tax-free (or “tax-deferred,” if you prefer) income or gain that individuals can realize.
Length – around 300 words
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- Based on the discussion in the chapter, evaluate how well each of these taxes meets Adam Smiths four requirements: a. Income tax b. Employment taxesList and briefly explain five (5) categories of tax-free (or “tax-deferred,” if you prefer) income or gain that individuals can realize.What is the tax liability for a single individual who has taxable income of $115,500, that includes a taxable qualified dividend of $2,000? Use the appropriate Tax Tables and Tax Rate Schedules. (All answers should be rounded to the nearest dollar.)
- What is the amount of the tax liability for a single person having taxable income of $59,200? Use the appropriate Tax Tables and Tax Rate Schedules 2022 Note: All answers should be rounded to the nearest dollar. Multiple Choice $7,326. $7,147. $8,647. $6,696.This Worksheet is provided as a courtesy to aid your work. Use it at your own discretion. Use the worksheets below to 1) calculate the tax that each person pays, and 2) the total tax revenue that will be collected. Use the following formula to calculate each person’s tax liability: Person X → ($Income in this braquet x 0.15) + ($Income in this braquet x 0.30) = Tax Paid by Person X Example 1; if person X earns $70,000/year, then → ($50,000 x 0.15) + ($20,000 x 0.30) = $7,500 + $6,000 = $13,500 Example 2; if person X earns $10,000/year, then → ($10,000 x 0.15) + ($0 x 0.30) = $1,500 + $0 = $1,500 3. What percent of the Nation's Income does the Total Tax Revenue represent?Here is the Federal Tax Rate Schedule X (see attached) that specifies the tax owed by a single taxpayer for a recent year. The given tax table can be modeled by a piecewise function (see attached), where x represents the taxable income of a single taxpayer and T(x) is the tax owed. Then Find and interpret T(50,000).
- Utilizing our Federal income tax table in this chapter, at a pre-tax net income of $20,000,000, which has the highest marginal tax rate, an individual or a C corporation?Use the Tax Rate Tables, Exhibit 18-3, to calculate the tax liability (in $) for the taxpayer. \table[[Name,Filing Status,Taxable Income,Tax Liability],[Rua,head of household,$195,300,$Given the following tax structure: Taxpayer Salary Total tax Mae $ 14,000 $ 1,260 Pedro $ 52,000 ??? Required: What is the minimum tax that Pedro should pay to make the tax structure vertically equitable based on the tax rate paid? Note: Round your final answer to nearest whole dollar amount. This would result in what type of tax rate structure?
- Use the Tax Rate Tables, Exhibit 18-3, to calculate the tax liability (in $) for the taxpayer. Name Filing Status Taxable Income Tax Liability Rua head of household $185,400Determine the amount of average income tax liability per tax return, for each income range provided, using the information in the below table. Taxable Income and Total Tax Liability are in thousands. Note: Enter your answers in whole dollars and not in thousands. Round the final answers to the nearest dollar value. Ranges of Adjusted Gross Income Item Under $15,000 $15,000 to under $30,000 $30,000 to under $50,000 $50,000 to under $100,000 $100,000 to under $200,000 $200,000 or more Number of returns 30,714,103 27,409,921 28,925,796 37,546,954 24,179,726 11,615,632 Taxable income $ 5,378,125 $ 189,335,926 $ 639,279,718 $ 1,912,915,663 $ 2,687,808,279 $ 6,249,255,422 Total tax liability $ 534,617 $ 15,640,244 $ 56,577,985 $ 216,089,667 $ 386,158,662 $ 1,592,115,179 Average tax rate*Footnote asterisk 9.94% 8.26% 8.85% 11.30% 14.37% 25.48% *Footnote asteriskThe average tax rate is total tax liability divided by taxable income.For the person below, calculate the FICA tax and income tax to obtain the total tax owed. Then find the overall tax rate on the gross income, including both FICA and income tax. Assume that the individual is single and takes the standard deduction. A womanearned a salary of $27,000 and received $1000 in interest. Tax Rate Single 10% up to $9325 15% up to $37,950 25% up to $91,900 28% up to $191,650 33% up to $416,700 35% up to $418,400 39.6% above $418,400 Standard deduction $6350 Exemption (per person) $4050 Let FICA tax rates be 7.65%on the first $127,200 of income from wages, and 1.45% on any income from wages in excess of $127,200. Her income tax is $_____.