Check my wo Moana is a single taxpayer who operates a sole proprietorship. She expects her taxable income next year to be $250,000, of which $200,000 is attributed to her sole proprietorship. Moana is contemplating incorporating her sole proprietorship. (Use the tax rate schedule ) a. Using the single individual tax brackets and the corporate tax rate, find out how much current tax this strategy could save Moana Ignore any Social Security Medicare, or self-employment tax issues). (Do not round your intermediate calculations. Round your final answer to two decimal places.) Current tacsaved b. How much income should be left in the corporation Income 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 S 86,375 $4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14,751 plus 24% of the excess over $86,375 $ 164,925 S 209.425 $33,603 plus 32% of the excess over $164.925 $ 209,425 S 523,600 $47,843 plus 35% of the excess over $209,425 $ 523,600 $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: The tax is: $ 0 $ 19.900 10% of taxable income $ 19,900 $ 81,050 $1.990 plus 12% of the excess over $19.900 S. 81,050 S 172.750 59.328 plus 22% of the excess over $81,050 $ 172.750 $ 329,850 $29.502 plus 24% of the excess over $172.750 S 329.850 S418.850567 206 plus 32% of the excess over $329,850 S418,850 S 628,300 $95.686 plus 33% of the excess oter S418.850 5.628,300 $168.993.50 plus 375 of the excess over $628,300 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: S 0 S 14,200 10 of taxable income S 11.200 $ 34200251.420 plus 1428 of the excess over $14.200 59.90 ESA 2 (1. ROSSO $ 19,900 $ 81,050 $ 172,750 $ 329,850 $ 418,850 $628,300 $ 81,050 $1.990 plus 12% of the $ 172,750 $9,328 plus 22% of the excess over $81,050 $ 329,850 $29,502 plus 24% of the excess over $172.750 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 628,300 $95.686 plus 35% of the excess over $418,850 $168.993.50 plus 37% of the excess over $628,300 Schedule 2 Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 14,200 10% of taxable income $ 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 $ 86,350 $6,220 plus 22% of the excess over $54,200 $ 86,350 S 164,900 $13,293 plus 24% of the excess over $86,350 $164,900 $ 209,400 $32.145 plus 32% of the excess over $164.900 $ 209,400 S 523,600 $46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37 of the excess over $523.600 Schedule Y-2-Married Filing Separately 1 taxable income is over: But not over The tax is: S 0 $9.950 108 of taxable income $9.950 5 10.325 $995 plus 12. of the excess over $9.950 S 40.325 S $6.373 51,664 plus 229 of the excess over $40.325 5 86,375 S 164925 $14.751 plus 243 of the excess over $86,375 $164.925 5 209.723 533.603 plus 32 of the excess over $164.925 $209,425 5314150 54,813 plus 35 of the excess over $209,423 5314.150 592 1963 plus 37 of the excess or er S: 14,150 Type here to search o
