Your high-earning great-grandparents paid federal income tax in 1963. Their total income was $165,000.a. Calculate their federal income tax bill.IncomeMarginal Tax Rate$0 to $4,000$4,000 to $24,000$24,000 to $64,000$64,000 to $164,000$164,00020%30%54%75%91%Calculationb. What was your great-grandparents' effective (or average) federal tax rate?Total tax billTaxc. How might your great-grandparents' decisions about how much to work have been influenced by their marginaltax rates?

Tax is collected by the country, state and city authorities from individuals and corporations. It is…

Answered: Your high-earning great-grandparents…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the following information to calculate the federal average tax rate (ignore tax credits) for a taxpayer who earned $115,000 from employment, and where bonds were sold for $20,000 during the year that originally cost $10,000: Taxable income Up to $47,630 On the next $47,629 On the next $52,408 On the next $62,704 Over $210,371 Select one: Tax Rate 15% 20.5% Based on the above, the average tax rate (ATR) is closest to: a. 19.15% b. 19,45% c. 20.5% d. 26.0% 26% 29% 33%
6. A married couple are calculating their federal income tax using the tax rate tables: Then Estimated Taxes Are If Taxpayer's Income Is Between So $16,700 $67,900 $137,050 $208,850 $372,950 But Not Over $16,700 $67,900 $137,050 $208,850 $372,950 Base TaxRate $0 10% $1,670.00 15% $9,350.00 25% $26,637.50 28% $46,741.50 33% $100,894.50 35% S0 $16,700 $67,900 $137,050 $208,850 $372,950 How much tax will they have to pay on their taxable income of $202,000? (4
4.An individual made $85,000 for the year. Using the tax given , answer the following questions: A.What is this person's marginal tax rate? B.How much tax does this person owe? C.What is the effective tax rate?
How much is the total income tax of Ana assuming she opted to be taxed at 8%? (base it on the picture given) P321,500 P342,500 P351,500 P358,000
Based on the following data, would Ann and Carl Wilton receive a refund or owe additional taxes? Note: Input the amount as a positive value. Tax Information Adjusted gross income Standard deduction Child care tax credit Federal income tax withheld Tax rate on taxable income. $ 47,060 $ 25,100 $ 100 $ 2,090 10 percent.
You earned $50,140 taxable income last year. What is your effective tax rate using the Single Filer Tax Bracket below (round percentage to two decimal places) {DO NOT INCLUDE % SIGN}? Type your response
A married couple are calculating their federal income tax using the tax rate tables: If Taxpayer's Income Is... Then Estimated Taxes Are... Between But Not Over Base Tax + Rate Of the Amount Over $0 $16,700 $0 10% $0 $16,700 $67,900 $1,670.00 15% $16,700 $67,900 $137,050 $9,350.00 25% $67,900 $137,050 $208,850 $26,637.50 28% $137,050 $208,850 $372,950 $46,741.50 33% $208,850 $372,950 - - - - - $100,894.50 35% $372,950 How much tax will they have to pay on their taxable income of $112,000?
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 man earned $30,000 from wages. Tax Rate 10% Single 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 Exemption (per person) $6350 $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. His FICA tax is $ (Round up to the nearest dollar.)
1. Consider the 2020 information for a single taxpayer without children: Situation A Situation B Wage Income Tax free intertest income Medical expenses paid State income taxes paid 85,000 105,000 2,200 2,200 7,950 3,800 450 3,800 Local property taxes paid Mortgage Interest paid Charitbale contributions 4,000 5,100 2,900 480 a. What is the total taxes owed under each scenario? b. In each scenario, what is the effective tax rate based on Taxable income? In each scenario, what is the marginal tax rate? C.
Chuck a single taxpayer earns $78,000.00 in taxable income and $13, 300.00 in interest from an investment in city of heflin bonds. How much federal tax will he owe? What is his average tax rate? What is his effective tax rate? What is his current marginal tax rate?
Use the tax brackets and rates in the table below to compute the federal tax for Lee, who is declaring taxable income of: iii. $185,000 Round off your answer to 2 decimal points. Taxable Income (income tax brackets) $46,605 or less Over $46,605 up to $93,208 Over $93,208 up to $144,489 Over $144,489 up to $205,842 Over $205,842 Tax Rates 15% of taxable income less than or equal to $46,605; plus 20.5% of taxable income greater than $46,605 and less than or equal to $93,208; plus 26% of taxable income greater than $93,208 and less than or equal to $144,489; plus 29% of taxable income greater than $144,489 and less than or equal to $205,842; plus 33% of taxable income greater than $205,842
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 man earned a salary of $27,000 and received $1250 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. His total FICA tax is $____.

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