Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: $ 0 $ 23,200 $ 94,300 $201,050 $ 383,900 $ 487,450 $ 731,200 $ 23,200 $ 94,300 $201,050 $ 383,900 $ 487,450 $ 731,200 The tax is: 10% of taxable income $2,320 plus 12% of the excess over $23,200 $10,852 plus 22% of the excess over $94,300 $34,337 plus 24% of the excess over $201,050 $78,221 plus 32% of the excess over $383,900 $111,357 plus 35% of the excess over $487,450 $196,669.50 plus 37% of the excess over $731,200

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 2RE: Refer to RE18-1. Assume that Parkers taxable income for Year 1 is 150,000. Prepare the journal entry...
icon
Related questions
Question

Required:

a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?

b. What is his marginal rate if, instead, he had $40.000 of additional deductions?

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse
If taxable income is over: But not over:
$
0
$ 23,200
$ 94,300
$201,050
$ 383,900
$ 487,450
$ 731,200
$ 23,200
$ 94,300
$201,050
$ 383,900
$ 487,450
$ 731,200
The tax is:
10% of taxable income
$2,320 plus 12% of the excess over $23,200
$10,852 plus 22% of the excess over $94,300
$34,337 plus 24% of the excess over $201,050
$78,221 plus 32% of the excess over $383,900
$111,357 plus 35% of the excess over $487,450
$196,669.50 plus 37% of the excess over $731,200
Transcribed Image Text:Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: $ 0 $ 23,200 $ 94,300 $201,050 $ 383,900 $ 487,450 $ 731,200 $ 23,200 $ 94,300 $201,050 $ 383,900 $ 487,450 $ 731,200 The tax is: 10% of taxable income $2,320 plus 12% of the excess over $23,200 $10,852 plus 22% of the excess over $94,300 $34,337 plus 24% of the excess over $201,050 $78,221 plus 32% of the excess over $383,900 $111,357 plus 35% of the excess over $487,450 $196,669.50 plus 37% of the excess over $731,200
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Personal Finance
Personal Finance
Finance
ISBN:
9781337669214
Author:
GARMAN
Publisher:
Cengage
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L