Tax liability: Marginal rate: Average rate:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Compute the 2023 tax liability and the marginal and average tax rates for the following taxpayers.
Click here to access the 2023 tax rate schedule. If required, round the tax liability to the nearest dollar. When
required, round the average rates to four decimal places before converting to a percentage (i.e., .67073 would
be rounded to .6707 and entered as 67.07%).
a. Chandler, who files as a single taxpayer, has taxable income of $146,400.
Tax liability:
Marginal rate:
Average rate:
%
Marginal rate:
Average rate:
%
b. Lazare, who files as a head of household, has taxable income of $76,800.
Tax liability:
%
%
Transcribed Image Text:Single-Schedule X
If taxable
income is:
Over-
$
0
11,000
44,725
95,375
182,100
231,250
income is:
Over-
$
But not
over-
$ 11,000
44,725
95,375
182,100
231,250
578,125
0
22,000
89,450
190,750
364,200
462,500
693,750
But not
over-
The tax is:
$ 22,000
89,450
190,750
364,200
462,500
693,750
****** 10%
$ 1,100.00+ 12%
5,147.00 +22%
16,290.00+ 24%
37,104.00+ 32%
52,832.00+ 35%
578,125
174,238.25 + 37%
Married filing jointly or Qualifying widow(er)--
Schedule Y-1
If taxable
The tax is:
......... 10%
$ 2,200.00 +12%
10,294.00+ 22%
32,580.00 24%
2023 Tax Rate Schedules
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
If taxable
income is:
Over-
$
0
15,700
59,850
95,350
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.
182,100
231,250
578,100
Married filing separately-Schedule Y-2
The tax is:
But not
over-
$ 11,000
44,725
95,375
182,100
231,250
346,875
......... 10 %
$ 1,570.00 +12%
6,868.00 22%
14,678.00 24%
35,498.00+ 32%
51,226.00+ 35%
172,623.50 37%
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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