Marginal tax rates: Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through income that is taxed at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given here, perform the following:a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $ 15,200 = 12% (i got this correct)The total taxes due for earnings before taxes of $15,200 is $____?I don't understand how to calculate this portion?I did:Base Tax + Marginal Rate * Amount over base bracket953 + 12% * $9525 = $2096 (the 2096 came in wrong and it said $1634 is the correct answer and i don't understand where that number came from?)
Marginal tax rates: Partner A, a single taxpayer, is one of two partners in a small business. As such, she receives pass-through income that is taxed at her personal tax rates. After all adjustments and deductions have been made, including the 20% qualified business income deduction, she is preparing to calculate her taxes owed for the year. Using the tax rate schedule given here, perform the following:
a. Find the marginal tax rate for the following levels of sole proprietorship earnings before taxes: $ 15,200 = 12% (i got this correct)
The total taxes due for earnings before taxes of $15,200 is $____?
I don't understand how to calculate this portion?
I did:
Base Tax + Marginal Rate * Amount over base bracket
953 + 12% * $9525 = $2096 (the 2096 came in wrong and it said $1634 is the correct answer and i don't understand where that number came from?)
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