1. A single taxpayer has $140,000 of taxable income. Using the tax rate schedules, compute this taxpayers federal income tax liability.

a. What is this taxpayers marginal tax rate?

b. What is this taxpayers average tax rate?

c. If this taxpayer were able to obtain a $1,000 deduction, how much in taxes would they save?

d. If this taxpayer were able to obtain a $1,000 credit, how much in taxes would they save?

2. A taxpayer is employed by Company S. The taxpayer had wages of $180,000 from the company this year. Compute the taxpayers social security and medicare tax.

3. A taxpayer had self-employment income of $180,000 this year. Compute the amount of social security and medicare self-employment tax that the taxpayer must pay this year.