Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they havelegitimate itemized deductions totaling $26,000. Their total income from wages is $203,100. Assume the following tax tableis applicable:Married Couples Filing Joint ReturnsYou Pay This Amounton the Base of theIf Your TaxablePlus This Percentage on Average Tax Rate at TopIncome IsBracketthe Excess over the Baseof BracketUp to $19,750$0.0010.0%10.0%$19,750-$80,250$80,250-$171,0501,975.0012.011.59,235.0022.017.1$171,050-$326,60029,211.0024.020.4$326,600-$414,70066,543.0032.022.8$414,700-$622,05094,735.0035.026.9Over $622,050What is their marginal tax rate?167,307.5037.037.0O a. 32.0%O b. 24.0%O c. 22.0%d. 12.0%O e. 35.0%

The question is related to marginal tax rate. The marginal tax rate is the tax rate you pay on an…

Answered: Alan and Sara Winthrop are a married…

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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Required: Determine 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. Iten Number of returns Taxable income Total tax liability Average tax rates Under $15.000 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 39,270,202 $6,939,029 $ 778,132 11.21N "The average tax rate is total tax liability divided by taxable income. S S $ $ $ $ Ranges of Adjusted Gross Income $30,000 to under $50,000 20 542 1,826 5,225 14,280 90.816 $15,000 to under $30,000 27,391,909 $ 192,903,768 $ 14,791,011 7.67% 27,233,637 $ 604,359,808 $50,210,871 8.31% $50,000 to under $100,000 34,641,449 $1,753,762,416 $ 106,213,777 10.62% $100,000 to under $200,000 21,113,838 $ 2,304,555,…
Tom and Rachel are married and living together in California. Their income is as follows: Tom's salary $40,000 Rachel's salary 30,000 Dividends (Tom's property) 5,000 Dividends (Rachel's property) 3,000 Interest (community property) 4,000 Total $82,000 If Rachel files a separate tax return, she should report income of: $ ……………………… If Tom and Rachel lived in Texas, what should Rachel report as income?
Maureen Smith is a single individual. She claims a standard deduction of $12,400. Her salary for the year was $188,000. Assume the following tax table is applicable. Single Individuals You Pay This Amount on the Base of the Bracket If Your Taxable Income Is Up to $9,875 $9,875-$40,125 $40,125-$85,525 $85,525-$163,300 $163,300-$207,350 $207,350-$518,400 Over $518,400 What is her marginal tax rate? a. 12.0% Ob. 32.0% c. 35.0% d. 24.0% e. 22.0% $0.00 987.50 4,617.50 14,605.50 33,271.50 47,367.50 156,235.00 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 30.1 37.0
Havel and Petra are married and will file a joint tax return. Havel has W-2 income of $38,840, and Petra has W-2 income of $49,642. Use the appropriate Tax Tables and Tax Rate Schedules. Required: What is their tax liability using the Tax Tables? What is their tax liability using the Tax Rate Schedule? Note: Round your intermediate computations and final answers to 2 decimal places.
Use the marginal tax rates in the table below to compute the tax owed in the following situation. Winona and Jim are married filing jointly, with a taxable income of $332,000. They are entitled to a $7000 tax credit. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% Standard deduction Exemption (per person) Married Filing Jointly up to $18,650 up to $75,900 up to $153,100 up to $233,350 up to $416,700 up to $470,700 above $470,700 $12,700 $4050 The tax owed is $. (Type an integer or a decimal.)
Paul and Olivia file a joint tax return and reported modified AGI of $142,000. They have two qualifying children, ages seven and nine, for the purpose of the child tax credit. What is the amount of their child tax credit? What is the amount of the credit if they're modified AGI is $167,000? What is the amount of their credit if their modified AGI is $432,000?
Jenni is married filling separately with taxable income of $68,000. How much tax does she owe? ( round to the nearest cent as needed) Tax Rate. Single 10% up to $9,325 15% up to $ 37, 950 25% up to $91, 900 The tax owed is $....
Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters incur $2,000 in investment expenses. They also incur $3,000 of investment interest expense during the year. The Porters' income for the year consists of $150,000 in salary and $2,500 of interest income. a. What is the amount of the Porters' investment interest expense deduction for the year? Investment interest expense deduction
Determine the amount of tax liability in each of the following instances: Use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000. Required: A married couple filing jointly with taxable income of $33,453. A married couple filing jointly with taxable income of $202,771. A married couple filing separately, one spouse with taxable income of $44,347 and the other with $56,687. A single person with taxable income of $79,898. A single person with taxable income of $313,471. A head of household with taxable income of $97,054. A qualifying widow with taxable income of $14,488. A married couple filing jointly with taxable income of $11,685.
Determine the taxable amount of social security benefits for the following situations. If an amount is zero, enter "$0".a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $36,000, no tax-exempt interest, and $12,400 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.b. Assume Erwin and Eleanor have adjusted gross income of $12,000, no tax-exempt interest, and $16,000 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.c. Assume Erwin and Eleanor have adjusted gross income of $85,000, no tax-exempt interest, and $15,000 of Social Security benefits. As a result, $ of the Social Security benefits are taxable.
Barbie and Jose are married and claim 2 exemptions. Last year Barbie earned $32,400 and Jose earned $28,600 in wages. Additional tax information for the year is as follows: Interest earned: $2,800; alimony paid: $5,900; contributions to IRA retirement fund: $2,300; state and local income taxes paid: $6,200; contributions to charity: $2,700. Find the taxable income if they file a joint return. A. $39,100 B. $37,950 C. $35,300 D. $39,200
Maureen Smith is a single individual. She claims a standard deduction of $12,400. Her salary for the year was $73,850. Assume the following tax table is applicable. Single Individuals If Your Taxable Income is Up to $9,875 $9,875-$40,125 $40,125-$85,525 $85,525-$163,300 $163,300-$207,350 You Pay This Amount on the Base of the Bracket O a $9,309.00 Ob $12,037.00 O c $4,617.50 Od $7.176.50 e $13.519.00 $0.00 987.50 4,617.50 14,605.50 33,271.50 47,367.50 156,235.00 $207 350-$518,400 Over $518,400 What is her federal tax liability? Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20,4 22.8 30,1 37.0

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