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1. Marginal tax brackets The amount of federal income taxes that you are required to pay is based on your filing status, your taxable income, and the IRS tax rate tables. The income tax tables are meaning the tax rates increase as taxable income increases. Each filing status has seven income ranges, or brackets, and the rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. As your taxable Income Increases, you pay at a higher rate, but only on the income that falls within a range. The following tax brackets show how the tax in the IRS tax tables is calculated. Tax Bracket Single 10% 12% $0-$11,000 $11,001-$14,725 Tax Brackets Married Filing Jointly $0-$22,000 22% $44,726-$95,375 $22,001-$89,450 $89,451-$190,750 24% $95,376-$182,100 $190,751-$364,200 32% $182,101-$231,250 $364,201-$462,500 35% $231,256-$578,125 $162,501-$693,750 37% $578,126+ $693,751+ Single Filers Taxable Income Tax $0-$11,000 of taxable income $11,001-$44,725 plus $44,726-$95,375 plus $95,376-$182,100 plus $182,101-$231,250 plus of excess over $11,000 of excess over $44,725 of excess over $95,375 of excess over $182,100 $231,256-$578,125 plus of excess over $231,250 $578,126+ plus of excess over $578,125 A first step to tax planning is to know your tax bracket and how close you are to the nearest tax brackets. What does it mean to be in the 22% tax bracket? Check all that apply. If you are married and filing jointly, your income falls in the $89,451 to $190,750 range. If you are single, your income falls in the $44,726 to $93,375 range. You pay 22% In taxes on your total taxable income. You pay 22% on your last dollar of taxable income earned.

1. Marginal tax brackets The amount of federal income taxes that you are required to pay is based on your filing status, your taxable income, and the IRS tax rate tables. The income tax tables are meaning the tax rates increase as taxable income increases. Each filing status has seven income ranges, or brackets, and the rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. As your taxable Income Increases, you pay at a higher rate, but only on the income that falls within a range. The following tax brackets show how the tax in the IRS tax tables is calculated. Tax Bracket Single 10% 12% $0-$11,000 $11,001-$14,725 Tax Brackets Married Filing Jointly $0-$22,000 22% $44,726-$95,375 $22,001-$89,450 $89,451-$190,750 24% $95,376-$182,100 $190,751-$364,200 32% $182,101-$231,250 $364,201-$462,500 35% $231,256-$578,125 $162,501-$693,750 37% $578,126+ $693,751+ Single Filers Taxable Income Tax $0-$11,000 of taxable income $11,001-$44,725 plus $44,726-$95,375 plus $95,376-$182,100 plus $182,101-$231,250 plus of excess over $11,000 of excess over $44,725 of excess over $95,375 of excess over $182,100 $231,256-$578,125 plus of excess over $231,250 $578,126+ plus of excess over $578,125 A first step to tax planning is to know your tax bracket and how close you are to the nearest tax brackets. What does it mean to be in the 22% tax bracket? Check all that apply. If you are married and filing jointly, your income falls in the $89,451 to $190,750 range. If you are single, your income falls in the $44,726 to $93,375 range. You pay 22% In taxes on your total taxable income. You pay 22% on your last dollar of taxable income earned.

FINANCIAL ACCOUNTING
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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1. Marginal tax brackets The amount of federal income taxes that you are required to pay is based on your filing status, your taxable income, and the IRS tax rate tables. The income tax tables are meaning the tax rates increase as taxable income increases. Each filing status has seven income ranges, or brackets, and the rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. As your taxable Income Increases, you pay at a higher rate, but only on the income that falls within a range. The following tax brackets show how the tax in the IRS tax tables is calculated. Tax Bracket Single 10% 12% $0-$11,000 $11,001-$14,725 Tax Brackets Married Filing Jointly $0-$22,000 22% $44,726-$95,375 $22,001-$89,450 $89,451-$190,750 24% $95,376-$182,100 $190,751-$364,200 32% $182,101-$231,250 $364,201-$462,500 35% $231,256-$578,125 $162,501-$693,750 37% $578,126+ $693,751+ Single Filers Taxable Income Tax $0-$11,000 of taxable income $11,001-$44,725 plus $44,726-$95,375 plus $95,376-$182,100 plus $182,101-$231,250 plus of excess over $11,000 of excess over $44,725 of excess over $95,375 of excess over $182,100 $231,256-$578,125 plus of excess over $231,250 $578,126+ plus of excess over $578,125 A first step to tax planning is to know your tax bracket and how close you are to the nearest tax brackets. What does it mean to be in the 22% tax bracket? Check all that apply. If you are married and filing jointly, your income falls in the $89,451 to $190,750 range. If you are single, your income falls in the $44,726 to $93,375 range. You pay 22% In taxes on your total taxable income. You pay 22% on your last dollar of taxable income earned.
Transcribed Image Text:1. Marginal tax brackets The amount of federal income taxes that you are required to pay is based on your filing status, your taxable income, and the IRS tax rate tables. The income tax tables are meaning the tax rates increase as taxable income increases. Each filing status has seven income ranges, or brackets, and the rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. As your taxable Income Increases, you pay at a higher rate, but only on the income that falls within a range. The following tax brackets show how the tax in the IRS tax tables is calculated. Tax Bracket Single 10% 12% $0-$11,000 $11,001-$14,725 Tax Brackets Married Filing Jointly $0-$22,000 22% $44,726-$95,375 $22,001-$89,450 $89,451-$190,750 24% $95,376-$182,100 $190,751-$364,200 32% $182,101-$231,250 $364,201-$462,500 35% $231,256-$578,125 $162,501-$693,750 37% $578,126+ $693,751+ Single Filers Taxable Income Tax $0-$11,000 of taxable income $11,001-$44,725 plus $44,726-$95,375 plus $95,376-$182,100 plus $182,101-$231,250 plus of excess over $11,000 of excess over $44,725 of excess over $95,375 of excess over $182,100 $231,256-$578,125 plus of excess over $231,250 $578,126+ plus of excess over $578,125 A first step to tax planning is to know your tax bracket and how close you are to the nearest tax brackets. What does it mean to be in the 22% tax bracket? Check all that apply. If you are married and filing jointly, your income falls in the $89,451 to $190,750 range. If you are single, your income falls in the $44,726 to $93,375 range. You pay 22% In taxes on your total taxable income. You pay 22% on your last dollar of taxable income earned.
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