Single-Schedule X If taxable 2023 Tax Rate Schedules Head of household-Schedule Z income is: Over- $ 0 But not over- $ 11,000 of the amount If taxable of the income is: But not The tax is: amount over- Over- over- The tax is: over- ......10% $ 0 $ 0 $ 15,700 .10% $ 0 11,000 44,725 44,725 95,375 $ 1,100.00+12% 11,000 15,700 59,850 $ 1,570.00+ 12% 15,700 5,147.00 +22% 44,725 59,850 95,350 6,868.00+22% 59,850 95,375 182,100 16,290.00 + 24% 95,375 95,350 182,100 14,678.00+24% 95,350 182,100 231,250 37,104.00+32% 182,100 182,100 231,250 35,498.00+32% 182,100 231,250 578,125 52,832.00 + 35% 231,250 231,250 578,100 51,226.00+ 35% 231,250 578,125 174,238.25 +37% 578,125 578,100 172,623.50+ 37% 578,100 Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable income is: Over- But not over- $ 0 $ 22,000 The tax is: .......10% of the amount over- If taxable income is: Over- But not over- The tax is: of the amount over- $ 0 $ 0 $ 11,000 .10% $ 0 22,000 89,450 89,450 190,750 $ 2,200.00+12% 22,000 11,000 44,725 $ 1,100.00 12% 11,000 10,294.00 +22% 89,450 44,725 95,375 5,147.00+22% 44,725 190,750 364,200 32,580.00 24% 190,750 95,375 182,100 16,290.00+24% 95,375 364,200 462,500 74,208.00 32% 364,200 182,100 231,250 37,104.00 32% 182,100 462,500 693,750 105,664.00 35% 462,500 231,250 346,875 52,832.00 +35% 231,250 693,750 186,601.50 37% 693,750 346,875 93,300.75+37% 346,875 For 2023, Wilma has properly determined that her taxable income is $36,000, including $3,000 of unrecaptured § 1250 gain and $8,200 of 0%/15%/20% gain. Wilma qualifies for head-of-household filing status. Compute Wilma's tax liability and tax savings from the alternative tax on net capital gain. Click here to access the tax rate schedules to use for this problem. Round your answers to the nearest dollar. When computing Wilma's tax liability, what tax rate is used for: •The $3,000 of unrecaptured § 1250 gain? 12% •The $8,200 of 0%/15%/20% gain? 0% Wilma's tax liability is $ X and the tax saving from the alternative tax computation is $ 984 V

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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I’m trying to figure out Wilma’s tax liability.
Single-Schedule X
If taxable
2023 Tax Rate Schedules
Head of household-Schedule Z
income is:
Over-
$
0
But not
over-
$ 11,000
of the
amount
If taxable
of the
income is:
But not
The tax is:
amount
over-
Over-
over-
The tax is:
over-
......10%
$
0
$
0
$ 15,700
.10%
$
0
11,000
44,725
44,725
95,375
$ 1,100.00+12%
11,000
15,700
59,850
$ 1,570.00+ 12%
15,700
5,147.00 +22%
44,725
59,850
95,350
6,868.00+22%
59,850
95,375
182,100
16,290.00 + 24%
95,375
95,350
182,100
14,678.00+24%
95,350
182,100
231,250
37,104.00+32%
182,100
182,100
231,250
35,498.00+32%
182,100
231,250
578,125
52,832.00 + 35%
231,250
231,250
578,100
51,226.00+ 35%
231,250
578,125
174,238.25 +37%
578,125
578,100
172,623.50+ 37%
578,100
Married filing jointly or Qualifying widow(er)-
Married filing separately-Schedule Y-2
Schedule Y-1
If taxable
income is:
Over-
But not
over-
$
0
$ 22,000
The tax is:
.......10%
of the
amount
over-
If taxable
income is:
Over-
But not
over-
The tax is:
of the
amount
over-
$
0
$
0
$ 11,000
.10%
$
0
22,000
89,450
89,450
190,750
$ 2,200.00+12%
22,000
11,000
44,725
$ 1,100.00 12%
11,000
10,294.00 +22%
89,450
44,725
95,375
5,147.00+22%
44,725
190,750
364,200
32,580.00 24%
190,750
95,375
182,100
16,290.00+24%
95,375
364,200
462,500
74,208.00 32%
364,200
182,100
231,250
37,104.00 32%
182,100
462,500
693,750
105,664.00 35%
462,500
231,250
346,875
52,832.00 +35%
231,250
693,750
186,601.50 37%
693,750
346,875
93,300.75+37%
346,875
Transcribed Image Text:Single-Schedule X If taxable 2023 Tax Rate Schedules Head of household-Schedule Z income is: Over- $ 0 But not over- $ 11,000 of the amount If taxable of the income is: But not The tax is: amount over- Over- over- The tax is: over- ......10% $ 0 $ 0 $ 15,700 .10% $ 0 11,000 44,725 44,725 95,375 $ 1,100.00+12% 11,000 15,700 59,850 $ 1,570.00+ 12% 15,700 5,147.00 +22% 44,725 59,850 95,350 6,868.00+22% 59,850 95,375 182,100 16,290.00 + 24% 95,375 95,350 182,100 14,678.00+24% 95,350 182,100 231,250 37,104.00+32% 182,100 182,100 231,250 35,498.00+32% 182,100 231,250 578,125 52,832.00 + 35% 231,250 231,250 578,100 51,226.00+ 35% 231,250 578,125 174,238.25 +37% 578,125 578,100 172,623.50+ 37% 578,100 Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable income is: Over- But not over- $ 0 $ 22,000 The tax is: .......10% of the amount over- If taxable income is: Over- But not over- The tax is: of the amount over- $ 0 $ 0 $ 11,000 .10% $ 0 22,000 89,450 89,450 190,750 $ 2,200.00+12% 22,000 11,000 44,725 $ 1,100.00 12% 11,000 10,294.00 +22% 89,450 44,725 95,375 5,147.00+22% 44,725 190,750 364,200 32,580.00 24% 190,750 95,375 182,100 16,290.00+24% 95,375 364,200 462,500 74,208.00 32% 364,200 182,100 231,250 37,104.00 32% 182,100 462,500 693,750 105,664.00 35% 462,500 231,250 346,875 52,832.00 +35% 231,250 693,750 186,601.50 37% 693,750 346,875 93,300.75+37% 346,875
For 2023, Wilma has properly determined that her taxable income is $36,000, including $3,000 of unrecaptured § 1250 gain and $8,200 of
0%/15%/20% gain. Wilma qualifies for head-of-household filing status. Compute Wilma's tax liability and tax savings from the alternative
tax on net capital gain.
Click here to access the tax rate schedules to use for this problem.
Round your answers to the nearest dollar.
When computing Wilma's tax liability, what tax rate is used for:
•The $3,000 of unrecaptured § 1250 gain? 12%
•The $8,200 of 0%/15%/20% gain? 0%
Wilma's tax liability is $
X and the tax saving from the alternative tax computation is $
984 V
Transcribed Image Text:For 2023, Wilma has properly determined that her taxable income is $36,000, including $3,000 of unrecaptured § 1250 gain and $8,200 of 0%/15%/20% gain. Wilma qualifies for head-of-household filing status. Compute Wilma's tax liability and tax savings from the alternative tax on net capital gain. Click here to access the tax rate schedules to use for this problem. Round your answers to the nearest dollar. When computing Wilma's tax liability, what tax rate is used for: •The $3,000 of unrecaptured § 1250 gain? 12% •The $8,200 of 0%/15%/20% gain? 0% Wilma's tax liability is $ X and the tax saving from the alternative tax computation is $ 984 V
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