Question
Estimate Take Home Pay using tax brackets for 2020 SHOW ALL YOUR WORK Personal Exemption: $-0- Standard Deduction: $12,400 ASSUME Gross Income = Adjusted Gross
Estimate Take Home Pay using tax brackets for 2020
SHOW ALL YOUR WORK
Personal Exemption: $-0-
Standard Deduction: $12,400
ASSUME Gross Income = Adjusted Gross Income = $140,000.
ASSUME: Single filer, no adjustments, no dependents, will take the standard deduction
ASSUME: Only deduction for state income taxes is rental deduction; assume individual deducts the maximum allowable amount of $3,000.
State Income Tax: 5 %
State Personal Exemption (single filer) = $4,400
Calculate the following -- SHOW YOUR WORK:
Total Taxable Income:
Total Federal Income Tax:
Total State Income Tax:
Total Social Security Tax:
Total Medicare Tax:
Total Federal and State Income Taxes:
Total Social Security and Medicare:
Total Income Tax and Payroll Taxes:
Take Home Pay or After-Tax Income:
COMPARE YOUR ANSWER TO THE ANSWER YOU GET USING A TAX CALCULATOR.
Nerd Wallet provides an easy-to-use gtax calculator that will allow you to estimate your tax burden. Be sure to choose the 2020 tax year.
https://www.nerdwallet.com/taxes/tax-calculator
Calculate the percentage of income paid in tax. Is this an example of a progressive, regressive or proportional tax? Explain.
Income Amount of Tax Percentage of income paid in Tax
10,000 2,000
50,000 2,000
100,000 2,000
Calculate the percentage of income paid in tax. Is this an example of a
progressive, regressive or proportional tax? Explain.
Income Amount of Tax Percentage of income paid in Tax
10,000 1,000
50,000 10,000
100,000 30,000
Calculate the percentage of income paid in tax. Is this an example of a progressive, regressive or proportional tax? Explain.
Income Amount of Tax Percentage of income paid in Tax
10,000 2,000
50,000 10,000
100,000 20,000
Which type of tax structure is based upon the ability to pay principle?
Should the Federal government allocate an additional 800 million dollars worth of US resources to support Ukraine in its war with Russia?
Tax Terminology:
Effective Tax Rate
Marginal Tax Rate
Average Tax Rate
Taxable Income
Gross Income
Adjusted Gross Income
Standard Deduction
Itemized Deductions
Tax Credit
Bracket Creep
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
