After the raise, the person's taxable income was in the % tax bracket 3. Compare the Net Incomes form before and after the raise. Did this person take home less money after the raise? 4. Can a raise that moves your income into a higher tax bracket actually reduce your net income? Explain. Let's get a little more practice with working backwards on taxes. We'll keep making all the same assumptions that we started with in the Pre Class Activity (assuming they fall into all of our assumptions such as single, no earned income credit, etc.) From the In Class Activity, we were working on creating a function for calculating taxes. Let's revisit some of that work and take it a bit further. 5. Let X be our taxable income. Suppose we know that "x" is between $39,475 and $84,200. a. What must the Adjusted Gross Income (AGI) be between in terms of X? b. Use "X" and write a function for how you would calculate the amount of taxes to be paid on C. How would this function change if we instead knew that is between $84,200 and $160.725? Write this new function Post Class: Income Tax Activity Use the 2019 Tax Schedule used with the In Class Activity for any tax calculations in the following problems 1. Use the tax schedule to compute the marginal tax rate beginning with a salary of $51,000 and from a 3% raise. 1040 Line(s) 1 and 8b Before Raise After Raise $51 000 Description Wages, salaries, and tips. Adjusted gross income (AGI) Standard deduction and exemption (single, nondependent) Subtract line 11a from line 8b. Taxable income 11a $12,200 $12.200 110 and BEFORE calculating the taxes, you should be able to fill in the blanks: The marginal tax rate on this additional income should fall between Why will the marginal tax rate fall between these two values? Total Tax (from schedule) Net Income (after Fed. Inc. Tax) Effective tax rate (lax as a percentage of all income) Additional (marginal) Income Additional (marginal) tax Marginal tax rate tax rate on additional income) % tax bracket 2. Before the raise, the person's taxable income was in the d Write a function for each line of the 2019 Tax Bracket and identify for which window of "x" values each should be used for example, your function from part (b) is only used for x values between $39,475 and $84.200 Now let's do a problem where we know the person's taxes and want to find their taxable income, and their AGI. You may find the functions you determined in the question above helpful 6. Suppose someone paid $17.500 in taxes. What could this person's adjusted gross income be? Amount 1040 Line(s) 1 and 8b 11a $12.200 Description Wages salaries and tips. Adjusted gross income (AGI) Standard deduction and exemption (single, nondependent) Subtract line 5 from line 4 Taxable income Total Tax (from schdaules Effective tax rate (tax as a percentage of all income) 11b $17.500 After the raise, the person's taxable income was in the % tax bracket 3. Compare the Net Incomes form before and after the raise. Did this person take home less money after the raise? 4. Can a raise that moves your income into a higher tax bracket actually reduce your net income? Explain. Let's get a little more practice with working backwards on taxes. We'll keep making all the same assumptions that we started with in the Pre Class Activity (assuming they fall into all of our assumptions such as single, no earned income credit, etc.) From the In Class Activity, we were working on creating a function for calculating taxes. Let's revisit some of that work and take it a bit further. 5. Let X be our taxable income. Suppose we know that "x" is between $39,475 and $84,200. a. What must the Adjusted Gross Income (AGI) be between in terms of X? b. Use "X" and write a function for how you would calculate the amount of taxes to be paid on C. How would this function change if we instead knew that is between $84,200 and $160.725? Write this new function Post Class: Income Tax Activity Use the 2019 Tax Schedule used with the In Class Activity for any tax calculations in the following problems 1. Use the tax schedule to compute the marginal tax rate beginning with a salary of $51,000 and from a 3% raise. 1040 Line(s) 1 and 8b Before Raise After Raise $51 000 Description Wages, salaries, and tips. Adjusted gross income (AGI) Standard deduction and exemption (single, nondependent) Subtract line 11a from line 8b. Taxable income 11a $12,200 $12.200 110 and BEFORE calculating the taxes, you should be able to fill in the blanks: The marginal tax rate on this additional income should fall between Why will the marginal tax rate fall between these two values? Total Tax (from schedule) Net Income (after Fed. Inc. Tax) Effective tax rate (lax as a percentage of all income) Additional (marginal) Income Additional (marginal) tax Marginal tax rate tax rate on additional income) % tax bracket 2. Before the raise, the person's taxable income was in the d Write a function for each line of the 2019 Tax Bracket and identify for which window of "x" values each should be used for example, your function from part (b) is only used for x values between $39,475 and $84.200 Now let's do a problem where we know the person's taxes and want to find their taxable income, and their AGI. You may find the functions you determined in the question above helpful 6. Suppose someone paid $17.500 in taxes. What could this person's adjusted gross income be? Amount 1040 Line(s) 1 and 8b 11a $12.200 Description Wages salaries and tips. Adjusted gross income (AGI) Standard deduction and exemption (single, nondependent) Subtract line 5 from line 4 Taxable income Total Tax (from schdaules Effective tax rate (tax as a percentage of all income) 11b $17.500