Question
Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in wages. Assume Ekiya has no dependents.
Ekiya, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in wages. Assume Ekiya has no dependents. Ekiya deducts the standard deduction instead of itemized deductions, she is not eligible for the qualified business income deduction, and she did not make any charitable donations. (Use the tax rate schedules.)
Required:
a. What is the amount of Ekiya's after-tax compensation (ignore payroll taxes)?
Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.
|
b-1. Suppose Ekiya receives a competing job offer of $120,000 in wages and nontaxable (excluded) benefits worth $5,000. What is the amount of Ekiya's after-tax compensation for the competing offer?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
|
2022 Tax Rate Schedules
Individuals Schedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 10,275 | 10% of taxable income |
$ 10,275 | $ 41,775 | $1,027.50 plus 12% of the excess over $10,275 |
$ 41,775 | $ 89,075 | $4,807.50 plus 22% of the excess over $41,775 |
$ 89,075 | $ 170,050 | $15,213.50 plus 24% of the excess over $89,075 |
$ 170,050 | $ 215,950 | $34,647.50 plus 32% of the excess over $170,050 |
$ 215,950 | $ 539,900 | $49,335.50 plus 35% of the excess over $215,950 |
$ 539,900 | $162,718 plus 37% of the excess over $539,900 |
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 20,550 | 10% of taxable income |
$ 20,550 | $ 83,550 | $2,055 plus 12% of the excess over $20,550 |
$ 83,550 | $ 178,150 | $9,615 plus 22% of the excess over $83,550 |
$ 178,150 | $ 340,100 | $30,427 plus 24% of the excess over $178,150 |
$ 340,100 | $ 431,900 | $69,295 plus 32% of the excess over $340,100 |
$ 431,900 | $ 647,850 | $98,671 plus 35% of the excess over $431,900 |
$ 647,850 | $174,253.50 plus 37% of the excess over $647,850 |
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 14,650 | 10% of taxable income |
$ 14,650 | $ 55,900 | $1,465 plus 12% of the excess over $14,650 |
$ 55,900 | $ 89,050 | $6,415 plus 22% of the excess over $55,900 |
$ 89,050 | $ 170,050 | $13,708 plus 24% of the excess over $89,050 |
$ 170,050 | $ 215,950 | $33,148 plus 32% of the excess over $170,050 |
$ 215,950 | $ 539,900 | $47,836 plus 35% of the excess over $215,950 |
$ 539,900 | $161,218.50 plus 37% of the excess over $539,900 |
Schedule Y-2-Married Filing Separately
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 10,275 | 10% of taxable income |
$ 10,275 | $ 41,775 | $1,027.50 plus 12% of the excess over $10,275 |
$ 41,775 | $ 89,075 | $4,807.50 plus 22% of the excess over $41,775 |
$ 89,075 | $ 170,050 | $15,213.50 plus 24% of the excess over $89,075 |
$ 170,050 | $ 215,950 | $34,647.50 plus 32% of the excess over $170,050 |
$ 215,950 | $ 323,925 | $49,335.50 plus 35% of the excess over $215,950 |
$ 323,925 | $87,126.75 plus 37% of the excess over $323,925 |
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