a) Danny had a taxable income of $126,500. How much federal income tax should he report? (assuming tax rates remain the same) b) Danny expects his taxable income to increase by 25%. How much federal tax should he expect to pay the following year (assuming tax rates remain the same)
Taxable Income (income tax brackets) Tax rates
15% on the first $50,197 of taxable income, plus
20.5% on the next $50,195 of taxable income (on the portion of taxable income over 50,197 up to $100,392), plus 26% on the next $55,233 of taxable income (on the portion of taxable income over $100,392 up to $155,625), plus 29% on the next $66,083 of taxable income (on the portion of taxable income over 155,625 up to $221,708), plus 33% of taxable income over $221,708
a) Danny had a taxable income of $126,500. How much federal income tax should he report? (assuming tax rates remain the same)
b) Danny expects his taxable income to increase by 25%. How much federal tax should he expect to pay the following year (assuming tax rates remain the same).
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