Jared Goff, of Los Angeles, determined the following tax information: gross salary, $85,000; interest earned, $2,500; IRA contribution, $4,500; and standard deduction, $12,200. Filing single, calculate Jared's taxable income and tax liability.
Jared Goff, of Los Angeles, determined the following tax information: gross salary, $85,000; interest earned, $2,500; IRA contribution, $4,500; and standard deduction, $12,200. Filing single, calculate Jared's taxable income and tax liability.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Jared Goff, of Los Angeles, determined the following tax information: gross salary, $85,000; interest earned, $2,500; IRA contribution, $4,500; and standard deduction, $12,200. Filing single, calculate Jared's taxable income and tax liability.
Transcribed Image Text:Table 4-2
Tax Rate Schedules
Individual Taxpayers
If Taxable Income Is Between:
0 - $9,700
$9,701 $39,475
$39,476 - $84,200
$84,201 - $160,725
$160,726 $204,100
$204,101 $510,300
$510,301 +
The Tax Due Is:
10% of taxable income
$970 + 12% of the amount over $9,700
$4,543 + 22% of the amount over $39,475
$14,382.50 +24% of the amount over $84,200
$32,748.50 + 32% of the amount over $160,725
$46,628.50 + 35% of the amount over $204,100
$153,798.50 + 37% of the amount over $510,300
Married Individuals Filing Joint Returns and Surviving Spouses
If Taxable Income Is Between:
The Tax Due Is:
0 - $19,400
$19,401 $78,950
$78,951 - $168,400
$168,401 $321,450
$321,451 $408,200
$408,201 - $612,350
$612,351 +
10% of taxable income
$1,940 + 12% of the amount over $19,400
$9,086 +22% of the amount over $78,950
$28,765 +24% of the amount over $168,400
$65,497 + 32% of the amount over $321,450
$93,257 + 35% of the amount over $408,200
$164,709.50 + 37% of the amount over $612,350
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