1. Calculate the tax liability on $92,000 of taxable income (BeforeTC&J Act of 2018). Individual? Ans: $19,530

2. Calculate the tax liability and average tax rate on $245,000 of taxable income(EBT). AFTER TC&J Act of 2018. Individual? Ans: $51,450; 21%

INDIVIDUAL TAX RATES: Rate Individuals Married Filing Jointly Year 2017 $0 to $9,325 $0 to $18,650 $9,325 to $37,950 $18,650 to $75,900 $37,950 to $91,900 $75,900 to $153,100 $91,900 to $191,650 $153,100 to $233,350 $191,650 to $416,700 $233,350 to $416,700 $416,700 to $418,400 $416,700 to $470,700 $418,400+ $470,700+ 10% 15% 25% 28% 33% 35% 39.60% Year 2018 (TC&J) Up to $9,525 Up to $19,050 (T) 10% $9,526 to $38,700 $19,051 to $77,400 12% 38,701 to $82,500 $77,401 to $165,000 22% $82,501 to $157,500 $165,001 to $315,000 24% $157,501 to $200,000 $315,001 to $400,000 32% $200,001 to $500,000 $400,001 to $600,000 35% over $500,000 over $600,000 37% CORPORATE TAX RATES: Pre-2018 Tax on Base Taxable income of Bracket Up to $50,000 $0 $50,000 - $75,000 7,500 $75,000 - $100,000 13,750 $100,000 - $335,000 22,250 $335,000 - $10,000,000 113,900 $10 million - $15 million 3,400,000 $15 million - $18.333 mil. 5,150,000 Over $18.333 million 6,416,667 Marginal Tax Rate 15% 25 34 39 Avg Tax Rate @ Top of Bracket 15.00 18.33 22.25 34.00 34.00 34.33 35.00 35.00 34 35 38 35 CORPORATE TAX RATES: Tax Cuts & Jobs Act changed it to a flat 21%