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Henrich is a single taxpayer. In 2021, his taxable income is $457,000. What is his income tax and net investment income tax liability in each
Henrich is a single taxpayer. In 2021, his taxable income is $457,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference.
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 $ 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 $ 209,425 $33,603 plus 32% of the excess over $164.925 $ 209,425 S 523,600 S47.843 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 S 81,050 $1.990 plus 12% of the excess over $19,900 $ 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 $ 329,850 S 418.850 567,206 plus 32% of the excess over $329,850 $ 418,850 S 628,300 $95.686 plus 35% of the excess over $418.850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 0 $ 14,200 10% of taxable income $ 14,200 S 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 S 86,350 56.220 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 $ 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 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 $ 209.425 $33.603 plus 32% of the excess over $164.925 $ 209,425 $ 314,150 $47.843 plus 35% of the excess over $209,425 $ 314,150 $84.496.75 plus 37% of the excess over $314.150 Tax Rates for Net Capital Gains and Qualified Dividends Taxable Income Rate Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates 0% SO - $80,800 SO - $40.400 $0 - $40,400 SO - $54.100 $0-$2,700 15% $80.801 - $501,600 $40.401 - $250.800 $40,401 - $445,850 $54.101 - $473.750 $2.701 - $13,250 20% $501,601+ $250.801+ $445.851+ $473,751+ $13,251+ *This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose). a. All of his income is salary from his employer. Amount Income tax Net investment income tax Total tax liability $ 0.00 b. His $457,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates. Amount Income tax Net investment income tax Total tax liability $ 0.00 c. His $457,000 of taxable income includes $53,000 of long-term capital gain that is taxed at preferential rates. Amount Income tax Net investment income tax Total tax liability $ 0.00 d. Henrich has $198,500 of taxable income, which includes $51,400 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000. Amount Income tax Net investment income tax Total tax liability $ 0.00
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