Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10 Part 2 of 3 ! Required information [The following information applies to the questions displayed below] Lacy is a single taxpayer. In 2021, her

10 Part 2 of 3 ! Required information [The following information applies to the questions displayed below] Lacy is a single taxpayer. In 2021, her taxable income is $44,600. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule. Dividends and Capital Gains Tax Rates for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Her $44,600 of taxable income includes $3,600 of qualified dividends. Tax liability Tax Rates for Net Capital Gains and Qualified Dividends Taxable Income Rate 0% Married Filing Jointly Married Filing Separately 15% SO-$80,800 $80,801-$501,600 $501,601+ $0-$40,400 $40,401-$250,800 $250,801+ 20% $0-$54,100 $54,101 $473,750 $473,751+ $2,701 $13,250 $13,251+ *This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified di income lost fon this Single $0-$40,400 $40,401 - $445,850 $445,851+ Head of Household Trusts and Estates $0-$2,700 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: S 0 $ 9,950 $ 9,950 $ 40,525 $ 40,525 $ 86,375 $ 86,375 $164,925 $ 209,425 $ 523,600 $ 164,925 $ 209,425 $ 523,600 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 19,900 $ 81,050 S 0 $ 19,900 $ 81,050 $ 172,750 $ 329,850 $418,850 $ 628,300 $ 628,300 S 172,750 $329,850 $418,850 The tax is: 10% of taxable income $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 S 14,200 $ 14,200 $ 54,200 $ 86,350 $ 54,200 $ 86,350 $164,900 $ 164,900 $209,400 $ 523,600 S 209,400 $ 523,600 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: S 0 $ 9,950 $ 9,950 $ 40,525 $ 40,525 $ 86,375 $ 86,375 $ 164,925 $ 164,925 $ 209,425 $ 314,150 $ 209,425 $314,150 The tax is: 10% of taxable income $995 plus 12% of the excess over $ 9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The 5 Ws Of Accounting So Clear A Two Year Old Gets It

Authors: Hayes Grooms III

1st Edition

979-8761646803

More Books

Students also viewed these Accounting questions