The simplest income tax calculation for a single person filing federal income taxes in the United States involves applying a standard deduction, personal exemption and marginal tax rates to the annual income of the taxpayer. For tax year 2015, the standard deduction for an individual was $6300 and the personal exemption was $4000. The 2015 tax rates vary by income bracket and are given in the table below. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% which equals $6203.50. You can calculate an "effective tax rate" based on the original income as Income Range $0.01-$9,225.00 $9,225.01-$37,450.00 $37,450.01-$90,750.00 $90,750.01-$189,300.00 $189,300.01-$411,500.00 $411,500.01-$413,200.00 Over $413,200 To compute the tax liability on a given income, first the deduction and exemption amounts are subtracted, then each portion of the income is taxed at the marginal rate according to the table. For example, for an income of $51,939 (US median income in 2014) you first apply the standard $6,300 deduction and the $4,000 exemption to get a taxable income of $51,939-$6,300-$4000 = $41,639. Then to compute the tax liability you have: TotalTax 0.1 x 9225 +0.15 x (37540-9225) +0.25 x (41639-37540) Effective Tax Rate = 6203.50 +51939 which equals 11.9%. Write a function that accepts total income as a single input. Your function should apply the standard deduction and exemption before using the marginal rates given in the table above to compute the total tax liability. Also compute the effective tax rate and return it's value (decimal value, not percent) as the second output of the function.
The simplest income tax calculation for a single person filing federal income taxes in the United States involves applying a standard deduction, personal exemption and marginal tax rates to the annual income of the taxpayer. For tax year 2015, the standard deduction for an individual was $6300 and the personal exemption was $4000. The 2015 tax rates vary by income bracket and are given in the table below. Tax Rate 10% 15% 25% 28% 33% 35% 39.6% which equals $6203.50. You can calculate an "effective tax rate" based on the original income as Income Range $0.01-$9,225.00 $9,225.01-$37,450.00 $37,450.01-$90,750.00 $90,750.01-$189,300.00 $189,300.01-$411,500.00 $411,500.01-$413,200.00 Over $413,200 To compute the tax liability on a given income, first the deduction and exemption amounts are subtracted, then each portion of the income is taxed at the marginal rate according to the table. For example, for an income of $51,939 (US median income in 2014) you first apply the standard $6,300 deduction and the $4,000 exemption to get a taxable income of $51,939-$6,300-$4000 = $41,639. Then to compute the tax liability you have: TotalTax 0.1 x 9225 +0.15 x (37540-9225) +0.25 x (41639-37540) Effective Tax Rate = 6203.50 +51939 which equals 11.9%. Write a function that accepts total income as a single input. Your function should apply the standard deduction and exemption before using the marginal rates given in the table above to compute the total tax liability. Also compute the effective tax rate and return it's value (decimal value, not percent) as the second output of the function.
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
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Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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Transcribed Image Text:The simplest income tax calculation for a single person filing federal income taxes in the United States involves applying a standard deduction, personal exemption and marginal tax rates to the annual income of the taxpayer. For tax year 2015, the
standard deduction for an individual was $6300 and the personal exemption was $4000. The 2015 tax rates vary by income bracket and are given in the table below.
Tax Rate
10%
15%
25%
28%
33%
35%
39.6%
which equals $6203.50. You can calculate an "effective tax rate" based on the original income as
Income Range
$0.01-$9,225.00
$9,225.01-$37,450.00
$37,450.01-$90,750.00
$90,750.01-$189,300.00
$189,300.01-$411,500.00
$411,500.01-$413,200.00
Over $413,200
To compute the tax liability on a given income, first the deduction and exemption amounts are subtracted, then each portion of the income is taxed at the marginal rate according to the table. For example, for an income of $51,939 (US median income in
2014) you first apply the standard $6,300 deduction and the $4,000 exemption to get a taxable income of $51,939-$6,300-$4000 = $41,639. Then to compute the tax liability you have:
TotalTax = 0.1 x 9225 +0.15 x (37540-9225) +0.25 x (41639- 37540)
Effective TaxRate = 6203.50 +51939
which equals 11.9%.
Write a function that accepts total income as a single input. Your function should apply the standard deduction and exemption before using the marginal rates given in the table above to compute the total tax liability. Also compute the effective tax rate
and return it's value (decimal value, not percent) as the second output of the function.
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