Chuck, a single taxpayer, earns $79,200 in taxable income and $15,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. f taxable income is over: But not over $11.000 $ 95,375 $ 182,100 $ 231,250 $ 378,125 The tax is: $11,000 10% of taxable income $ 44,725 $1,100 plus 12% of the excess over $11.000 $95.375 $5,147 plus 22% of the excess over $44,725 $182,100 $16,290 plus 24% of the excess over $95,375 $231.250 $37,104 plus 32% of the excess over $152,100 | $578,125 552.852 plus 35% of the excess over $231.250 $174.238.25 plus 37% of the excess over $573,12 The tax is: Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: $0 $ 22.000 $89.450 $ 190,750 $364,200 $462.500 $ 693,750 $15.700 $ 59,850 $95.350 $1$2,100 $ 231,250 $ 578,100 10% of taxable income $$9.450 $2,200 plus 12% of the excess over $22,000 $190,750 | $10,294 plus 22% of the excess over $89,450 $364.200 $32,580 plus 24% of the excess over $190,750 $462.500 $74,208 plus 32% of the excess over $364,200 $693,750 $105,664 plus 35% of the excess over $462,500 | $186,601.5 plus 37% of the excess over $693,750 Schedule Z-Head of Household If taxable income in over: But not over: The tax is $15.700 10% of taxable income $59.950 $1,570 plus 12% of the excess over $15,700 $95.350 $6.868 plus 22% of the excess over $59.850 $182,10 | $14,678 plus 24% of the excess over $93,350 $ 231,250 $35,498 plus 32% of the excess over $182,100 | $575,100 $51,226 plus 35% of the excess over $231,250 || 5172,623.5 plus 37% of the excess over $578,100
Chuck, a single taxpayer, earns $79,200 in taxable income and $15,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. f taxable income is over: But not over $11.000 $ 95,375 $ 182,100 $ 231,250 $ 378,125 The tax is: $11,000 10% of taxable income $ 44,725 $1,100 plus 12% of the excess over $11.000 $95.375 $5,147 plus 22% of the excess over $44,725 $182,100 $16,290 plus 24% of the excess over $95,375 $231.250 $37,104 plus 32% of the excess over $152,100 | $578,125 552.852 plus 35% of the excess over $231.250 $174.238.25 plus 37% of the excess over $573,12 The tax is: Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: $0 $ 22.000 $89.450 $ 190,750 $364,200 $462.500 $ 693,750 $15.700 $ 59,850 $95.350 $1$2,100 $ 231,250 $ 578,100 10% of taxable income $$9.450 $2,200 plus 12% of the excess over $22,000 $190,750 | $10,294 plus 22% of the excess over $89,450 $364.200 $32,580 plus 24% of the excess over $190,750 $462.500 $74,208 plus 32% of the excess over $364,200 $693,750 $105,664 plus 35% of the excess over $462,500 | $186,601.5 plus 37% of the excess over $693,750 Schedule Z-Head of Household If taxable income in over: But not over: The tax is $15.700 10% of taxable income $59.950 $1,570 plus 12% of the excess over $15,700 $95.350 $6.868 plus 22% of the excess over $59.850 $182,10 | $14,678 plus 24% of the excess over $93,350 $ 231,250 $35,498 plus 32% of the excess over $182,100 | $575,100 $51,226 plus 35% of the excess over $231,250 || 5172,623.5 plus 37% of the excess over $578,100
Chapter25: Taxation Of International Transactions
Section: Chapter Questions
Problem 30P
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Question
Transcribed Image Text:Individuals
Schedule X-Single
The tax is
$11.000
Chuck, a single taxpayer, earns $79,200 in taxable income and taxable income in over. But not over
$15,000 in interest from an investment in City of Heflin bonds.
(Use the U.S. tax rate schedule.)
10% of taxable income
$ 44,725 $1,100 plus 12% of the excess over $11,000
$95,375 $5,147 plus 22% of the excess over $44,725
$182,100 $16,290 plus 24% of the excess over $95,375
$231,250 $37,104 plus 32% of the excess over $152.100
$578,125 $52,832 plus 35% of the excess over $231,250
| $174,258.25 plus 37% of the excess over $578,12
Required:
a. If Chuck earns an additional $40,000 of taxable income,
what is his marginal tax rate on this income?
b. What is his marginal rate if, instead, he had $40,000 of
additional deductions?
Note: For all requirements, do not round intermediate
calculations. Round percentage answers to 2 decimal
places.
a. Marginal tax rate
b. Marginal tax rate
24.00 %
22.00 %
$ 11,000
$ 44,725
$ 95,375
$182,100
$231.250
$578,125
The tax it:
10% of taxable income
Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse
If taxable income is over: But not over:
$
$22,000
$ 22,000
$89,450 $2,200 plus 12% of the excess over $22,000
$89,450
$190,750 $10,294 plus 22% of the excess over $89,450
$ 190,750
$364,200 $32,580 plus 24% of the excess over $190,750
$364,200
$462,500 $74,208 plus 32% of the excess over $364,200
$462,500
$693,750 $105,664 plus 35% of the excess over $462,500
$693,750
| $186,601.5 plus 37% of the excess over $693,750
Schedule Z-Head of Household
If taxable income is over: But not over:
$ 0
$ 15,700
$ 15,700
$59,850
$ 59,850
$ 95,350
$95.350
$182,100
$182,100
$231,250
| $575,100
$ 231,250
$578,100
The tax iss
$95.375
$182,100
$ 231.250
$ 346,875
10% of taxable income
$1,570 plus 12% of the excess over $15.700
$6,868 plus 22% of the excess over $59.350
$14,673 plus 24% of the excess over $95,350
$35,498 plus 32% of the excess over $1$2,100
$51,226 plus 35% of the excess over $231,250
$172,623.5 plus 37% of the excess over $578,100
10% of taxable income
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over:
$ 0
$11,000
$ 11,000
$ 44,725
$ 44,725
$95,375
$182,100 $16,290 plus 24% of the excess over $95,375
$231,250 $37,104 plus 32% of the excess over $1$2,100
$52,832 plus 35% of the excess over $231,250
$93,300.75 plus 37% of the excess over $346,875
$1,100 plus 12% of the excess over $11,000
$5,147 plus 22% of the excess over $44,725
$346,875
The tax is
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