Joanna is single and has 2 dependent children. She earns a gross yearly salary of $60,214. She will alsomake the following tax-deductible purchase:• Educational expenses: $4,936Compute her final income tax.Use the following information:Heads of HouseholdIf Taxable Income Is Between:0- $14,100The Tax Due Is:10% of taxable income$14,101 - $53,700$1,410 + 12% of the amount over $14,100$53,701 - $85,500$6,162 + 22% of the amount over $53,700$85,501 - $163,300$13,158 + 24% of the amount over $85,500$163,301 - $207,350$31,830 + 32% of the amount over $163,300$207,351 - $518,400$45,926 + 35% of the amount over $207,350$518,401$154,793.50 + 37% of the amount over $518,400Standard deduction for heads of households: $18,650Round your answer to the nearest dollar.

Income tax is the liability imposed by the government on the income of the citizen.

Answered: Joanna is single and has 2 dependent…

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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Felix and Freddie are married with annual taxable income of $230,000. They pay income tax according to the following schedule: over not tax rate 0 $43,850 15% $43,850 $105,950 ??? $105,950 $361,450 31% If the total personal income tax they pay is $58,695, which of the following comes closest to the tax rate for income between $43,850 and 105,950 (the middle tax rate)? Select one: a. 21% b. 24% c. 23% d. 22% e. 25%
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Joyce, a single parent, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns $33,000 during 2023. She uses the standard deduction and files as a head of household. Round all computations to the nearest dollar. Click to access Earned Income Credit and Phaseout Percentages Table and the Tax Rates Schedules. a. Calculate the amount, if any, of Joyce's earned income credit. 2,696 X b. During the year, Joyce is offered a new job that has greater future potential than her current job. If she accepts the job offer, her earnings for the year will be $40,400; however, she is afraid she will not qualify for the earned income credit. Determine the increase or decrease in Joyce's net cash flow if she accepts the new job. Since the child tax credit will be the same under either scenario, you can ignore it for purposes of this analysis. Use the Tax Rate Schedule when computing her income tax. Tax calculation: Salary Less: Standard deduction Taxable income…

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