Answered: Problem #1. Your uncle has a taxable…

Problem #1. Your uncle has a taxable income of $85,142 last year. If he files as a head of household, what is his tax liability.

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter1: Federal Income Taxation—an Overview

Section: Chapter Questions

Problem 43P

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

Problem #1. Your uncle has a taxable income of $85,142 last year. If he files as a head of household, what is his tax liability. (Use Table 18-3 and example 11 from Chapter 18 as a guide.)

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