Kim, a U.S. citizen
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kim, a U.S. citizen and resident, owns and operates a novelty goods business. During 2023, Kim reports taxable income of $115,000: $50,000 from foreign sources and $65,000 from U.S. sources. In calculating taxable income, the standard deduction is used. The income from foreign sources is subject to foreign income taxes of $17,500. For 2023, Kim files a joint return with her spouse.
Question Content Area
a. Assuming that Kim chooses to claim the foreign taxes as an income tax credit, what is her net Federal income tax payable for 2023?
Transcribed Image Text:Single-Schedule X
If taxable
income is:
Over-
$ 0
income is:
Over-
$
0
But not
over-
22,000
89,450
190,750
364,200
462,500
693,750
$ 11,000
44,725
95,375
182,100
231,250
578,125
.........10%
11,000
$ 1,100.00 + 12%
44,725
5,147.00 +22%
95,375
16,290.00 +24%
182,100
37,104.00 + 32%
231,250
52,832.00 + 35%
578,125
174,238.25 + 37%
Married filing jointly or Qualifying widow(er)—
Schedule Y-1
If taxable
But not
over-
The tax is:
$ 22,000
89,450
190,750
364,200
462,500
693,750
The tax is:
2023 Tax Rate Schedules
.10%
$ 2,200.00 + 12%
10,294.00 +22%
32,580.00 + 24%
74,208.00+ 32%
105,664.00 + 35%
186,601.50 + 37%
of the
amount
over-
$
0
11,000
44,725
95,375
182,100
231,250
578,125
of the
amount
over-
$
0
22,000
89,450
190,750
364,200
462,500
693,750
Head of household—Schedule Z
taxable
income is:
Over-
$
If taxable
income is:
Over-
$
But not
over-
0
11,000
44,725
95,375
182,100
231,250
346,875
$ 15,700
59,850
95,350
182,100
231,250
578,100
0
.........10%
15,700
$ 1,570.00 + 12%
59,850
6,868.00 +22%
95,350
14,678.00 + 24%
182,100
35,498.00 + 32%
231,250
51,226.00+ 35%
578,100
172,623.50 +37%
Married filing separately—Schedule Y-2
But not
over-
The tax is:
$ 11,000
44,725
95,375
182,100
231,250
346,875
The tax is:
.10%
$ 1,100.00 + 12%
5,147.00 +22%
16,290.00 +24%
37,104.00 + 32%
52,832.00 + 35%
93,300.75 +37%
.....
of the
amount
over-
$
0
15,700
59,850
95,350
182,100
231,250
578,100
of the
amount
over-
$
0
11,000
44,725
95,375
182,100
231,250
346,875
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