. Explain and calculate the differences resulting from a $1,000 tax credit versus a $1,000 tax deduction for asingle taxpayer with $40,000 of pre-tax income that takes a standard deduction of $12,000. Be sure to showyour work.Taxable income is: Taxable Income Not Over:$9,700$39,475$84,200$160,275$0$9,701$39,476$84,201Tax Due Is:10% of the taxable income$1,940 plus 12% of the excess over $19,400$9,086 Plus 22% of the excess over $78,950$28,765 plus 24% of the excess over $168,400

Answer:- Taxable income:- The amount of the gross income that is used to determine how much tax you…

Answered: Explain and calculate the differences…

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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Now consider another hypothetical tax code. Assume the tax rate on the first $15,000 of taxable income is 10% and the tax rate on any additional income is 18%. The standard deduction ($6,350) and personal exemption ($4,050) still apply. In other words: . For taxable income from $0 to $15,000, you pay 10% of your taxable income in taxes, plus . For taxable income above $15,000, you pay 18% of your taxable income. 1. If your total income before exemptions were $10,000 how much would you pay in taxes? 2. If your total income were $20,000 how much would you pay in taxes? 3. If your total income were $50,000 how much would you pay in taxes? 4. Write a function to model the total tax paid, T(x), with a total income of x dollars. 5. Create a graph that shows taxes paid as a function of total income for the total income between $0 and $60,000. 6. How many different slopes are on this graph?
For a corporate taxpayer, how much additional tax savings is generated by a $1,000 tax credit as compared to a $1,000 tax deduction? Correct answer should be $790
I need help solving this problem Daniel Simmons arrived at the following tax information: Gross salary $ 62,250 Interest earnings $ 75 Dividend income $ 140 One personal exemption $ 4,050 Itemized deductions $ 7,000 Adjustments to income $ 850 Assume the standard deduction for a single person is $6,350. Calculate the following information: Total Income = Adjusted Gross Income = Taxable Income = Thank you!
Use the tax table to determine each of the following values if your adjusted gross income is $20,000. Your tax liability if you are filing single using the standard deduction of $12,500 and have no adjustments, itemized deductions, or tax credits. Your tax liability if you are filing single using the standard deduction of $12,500, have a child tax credit of $500 and no other adjustments, deductions or credits.
Use the following information Molly has collect to help her determine her taxable income for the year: Salary from her job 115,100 Interest earn from 1,280 savings Interest paid on student loans Your Answer: Answer 905 Standard deduction 12,950 Itemized deductions 842 Child tax credit 2000
Find the gross income, the adjusted gross income, and the taxable income. A taxpayer earned wages of $61,300, received $880 in interest from a savings account, and contributed $2,200 to a tax-deferred retirement plan. He was entitled to a personal exemption of $4050 and had deductions totaling $6,930. OA. $62,180; $59,980; $55,930 OB. $64,380; $60,330; $53,400 OC. $62,180; $59,980; $49,000 D. $64,380; $60,330; $55,930 H
Calculate the tax payable if an individual taxpayer has the following amounts of taxable income. Include Medicare Levy and Medicare Levy surcharge, where applicable. $17,000 – Non-resident (not a working holiday maker). $95,000 – Non-resident, (not a working holiday maker. $100,000 – Resident, with no private health insurance. $245,000 - Resident; with private health insurance.
*Adjusted Gross income is $18,000* Determine the tax liability if you are filing single using the standard deduction of $12,000 and have no adjustments, itemized deductions, or tax credits.
You just completed your taxes and had $3,790 withheld for income taxes and a final tax liability of $3,600. Would you be entitled to a/an (refund or additional amount due) and for what amount ?
Suppose you made $70,390 of income from wages and $178 of taxable interest. You also made contributions of $6400 to a tax deferred retirement account. You have 2 dependents and file as single. The standard deduction is 3900 and the exemption is 5900 per exemption. What is your Taxable Income? Answer to the nearest dollar.
The following table shows tax due for the given taxable income level for a single taxpayer. Taxable income Tax due $97,000 $97,050 $97,100 $97,150 $97,200 $21,913 $21,927 $21,941 $21,955 $21,969 (a) Show that the data in the table are linear. For every change of $50 in the taxable income there is constant change of $ 1.00 in the tax due. These data exhibit a constant rate of change and are linear. (b) How much additional tax is due on each dollar over $97,000? (Round your answer to the nearest cent.) per dollar (c) What would you expect for your tax due if you had a taxable income of $97,000? 24 What would you expect for your tax due if you had a taxable income of $98,000? $ (d) Find a linear formula that gives tax due T if your income is A dollars over $97,000. (Round equation parameters to two decimal places.) T =
What is the after-tax cost in the following situations if the taxpayer has additional deductions as stated? Assume the taxpayer is in the 24% marginal tax bracket. (a) Deductible expense paid of $33,000. After-tax cost $

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