9-5a Tax Rate Schedule Method The Tax Rate Schedules reflect the tax rate brackets as laid out in the Internal Revenue Code. * The 2021 rate schedule for single taxpayers is reproduced in Exhibit 9.6. This schedule is used to illustrate the tax computation in Examples 33 and 34 . Exhibit 9.6 2021 Tax Rate Schedule for Single Taxpayers 2021 Tax Rate Schedules \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Single-Schedule X} & \multicolumn{5}{|c|}{ Head of household-Schedule Z } \\ \hline \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & The tax is: & \begin{tabular}{l} of the \\ amount \\ over- \end{tabular} & \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & & The tax is: & \begin{tabular}{l} of the \\ amount \\ over- \end{tabular} \\ \hline 0 & $9,950 & .........10\% & 0 & 0 & $14,200 & & ..........10\% & $ \\ \hline 9,950 & 40,525 & 995.00+12% & 9,950 & 14,200 & 54,200 & $ & 1,420.00+12% & 14,200 \\ \hline 40,525 & 86,375 & 4,664.00+22% & 40,525 & 54,200 & 86,350 & & 6,220.00+22% & 54,200 \\ \hline 86,375 & 164,925 & 14,751.00+24% & 86,375 & 86,350 & 164,900 & & 13,293.00+24% & 86,350 \\ \hline 164,925 & 209,425 & 33,603.00+32% & 164,925 & 164,900 & 209,400 & & 32,145.00+32% & 164,900 \\ \hline 209,425 & 523,600 & 47,843.00+35% & 209,425 & 209,400 & 523,600 & & 46,385.00+35% & 209,400 \\ \hline 523,600 & ......... & 157,804.25+37% & 523,600 & 523,600 & ........... & & 56,355.00+37% & 523,600 \\ \hline \end{tabular} Problem 9-24 (Algorithmic) (LO. 4, 5) Toby and Nancy are engaged and plan to get married. During 2021, Toby is a full-time student and earns $9,400 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Nancy is employed and has wages of $88,000. Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, " 0 ". Do not round your intermediate computations. Round your final answer to nearest whole dollar. a. Compute the following: b. Assume that Toby and Nancy get married in 2021 and file a joint return. What is their taxable income and income tax? Round your final answer to nearest whole dollar. c. How much income tax can Toby and Nancy save if they get married in 2021 and file a joint return? \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{l} Married fi \\ Schedule \end{tabular} & jointly & ualifying widc & & Married & epara & chedule Y-2 & \\ \hline \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & The tax is: & \begin{tabular}{l} of the \\ amount \\ over- \end{tabular} & \begin{tabular}{l} If taxable \\ income is: \\ Over- \end{tabular} & \begin{tabular}{l} But not \\ over- \end{tabular} & The tax is: & \begin{tabular}{l} of the \\ amount \\ over- \end{tabular} \\ \hline 0 & \$ 19,900 & .........10\% & $ & 0 & \$ 9,950 & 10% & s \\ \hline 19,900 & 81,050 & \$ 1,990.00+12% & 19,900 & 9,950 & 40,525 & \$ 995.00+12% & 9,950 \\ \hline 81,050 & 172,750 & 9,328.00+22% & 81,050 & 40,525 & 86,375 & 4,664.00+22% & 40,525 \\ \hline 172,750 & 329,850 & 29,502.00+24% & 172,750 & 86,375 & 164,925 & 14,751.00+24% & 86,375 \\ \hline 329,850 & 418,850 & 67,206.00+32% & 329,850 & 164,925 & 209,425 & 33,603.00+32% & 164,925 \\ \hline 418,850 & 628,300 & 95,686.00+35% & 418,850 & 209,425 & 314,150 & 47,843.00+35% & 209,425 \\ \hline 628,300 & .......... & 168,993.50+37% & 628,300 & 314,150 & .......... & 84,496.75+37% & 314,150 \\ \hline \end{tabular} The following amounts of tax are computed using the 2021 Tax Rate Schedules for a taxpayer (or taxpayers in the case of a joint return) with $60,000 of taxable income (see Appendix A)
