Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume a retiree is age 64, single, with the following for 2020: Taxable investment income SS benefits received Household expenses Compute the 2020 Federal
Assume a retiree is age 64, single, with the following for 2020: Taxable investment income SS benefits received Household expenses Compute the 2020 Federal income tax liability. The following were in effect in 2020: $20,000 $30,000 $36,000 Single filers Tax rate Taxable income bracket 10% $0 to $9,875 12% $9,876 to $40,125 22% $40,126 to $85,525 24% 32% 35% $85,526 to $163,300 $163,301 to $207,350 $207,351 to $518,400 37% $518,401 or more 10% of taxable income Tax owed $987.50 plus 12% of the amount over $9,875 $4,617.50 plus 22% of the amount over $40,125 $14,605.50 plus 24% of the amount over $85,525 $33,271.50 plus 32% of the amount over $163,300 $47,367.50 plus 35% of the amount over $207,350 $156,235 plus 37% of the amount over $518,400 The 2020 standard deduction if filing as single is $12,400 For 2020 there is an additional $1,300 standard deduction for each married person age 65 or older ($1,650 if single and age 65 or older).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started