Use the 2016 marginal tax rates to compute the income tax owed by the following person. Unmarried head of household with two dependent children. Gross income: $54,000 Adjustments: none Deductions: $3505 state taxes $4000 theft loss Tax credit: $3000 i Click the icon to view the 2016 marginal tax rates. ... The income tax owed is $. (Type an integer or a decimal. Round to the nearest cent as needed.)
Use the 2016 marginal tax rates to compute the income tax owed by the following person. Unmarried head of household with two dependent children. Gross income: $54,000 Adjustments: none Deductions: $3505 state taxes $4000 theft loss Tax credit: $3000 i Click the icon to view the 2016 marginal tax rates. ... The income tax owed is $. (Type an integer or a decimal. Round to the nearest cent as needed.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:**Calculating Income Tax Using 2016 Marginal Tax Rates**
To compute the income tax owed, consider the following financial details for an unmarried head of household with two dependent children:
- **Gross Income:** $54,000
- **Adjustments:** None
- **Deductions:**
- State Taxes: $3,505
- Theft Loss: $4,000
- **Tax Credit:** $3,000
**Instructions:**
Click the icon provided to view the 2016 marginal tax rates necessary for the calculation.
**Calculate:**
"The income tax owed is $_____."
(Type an integer or a decimal. Round to the nearest cent as needed.)
This section guides users through determining the tax owed based on the given financial profile and available tax data.
Transcribed Image Text:### 2016 Marginal Tax Rates, Standard Deductions, and Exemptions
#### Tax Rate Categories:
- **Unmarried, divorced, or legally separated**
- **Married and each partner files a separate tax return**
- **Married and both partners file a single tax return**
- **Unmarried and paying more than half the cost of supporting a child or parent (Head of Household)**
#### Tax Rates and Income Brackets:
- **10% Tax Rate:**
- Single: up to $9,275
- Married Filing Separately: up to $9,275
- Married Filing Jointly: up to $18,550
- Head of Household: up to $13,250
- **15% Tax Rate:**
- Single: $9,276 to $37,650
- Married Filing Separately: $9,276 to $37,650
- Married Filing Jointly: $18,551 to $75,300
- Head of Household: $13,251 to $50,400
- **25% Tax Rate:**
- Single: $37,651 to $91,150
- Married Filing Separately: $37,651 to $75,950
- Married Filing Jointly: $75,301 to $151,900
- Head of Household: $50,401 to $130,150
- **28% Tax Rate:**
- Single: $91,151 to $190,150
- Married Filing Separately: $75,951 to $115,725
- Married Filing Jointly: $151,901 to $231,450
- Head of Household: $130,151 to $210,800
- **33% Tax Rate:**
- Single: $190,151 to $413,350
- Married Filing Separately: $115,726 to $206,675
- Married Filing Jointly: $231,451 to $413,350
- Head of Household: $210,801 to $413,350
- **35% Tax Rate:**
- Single: $413,351 to $415,050
- Married Filing Separately: $206,676 to $233,475
- Married Filing Jointly: $413,351 to $466,950
-
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