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I need the detailed solution (Marginal Table is given also) Suppose you are single and earned wages of $33200. You received $350 in interest from
I need the detailed solution (Marginal Table is given also)
Suppose you are single and earned wages of $33200. You received $350 in interest from a savings account. You contribute $500 to a tax deferred retirement fund. You have $450 in deductions from charitable contributions and take the standard deduction. a. How much is your exemption? b. How much is your standard deduction? c. What is your gross income? d. What is your adjusted gross income? e. What is your taxable income? f. How much are your income taxes owed?
TABLE 4.10 2006 Marginal Tax Rates, Standard Deductions, and Exemptions Married Filing Jointly Married Filing Separately Head of Household Tax Rate 10% 15% 25% 28% 33% 35% Single up to $7550 up to $30,650 up to $74,200 up to $154.800 up to $336.550 above $336,550 up to $15,100 up to $61,300 up to $123,700 up to $188,450 up to $336,550 above $336,550 up to $7550 up to $30,650 up to $61,850 up to $94,225 up to $168,275 above $168.275 up to 10,750 up to $41,050 up to $106,000 up to $171,650 up to $336,550 above $336,550 standard deduction $5150 $10,300 $5150 $7550 exemption (per person) $3300 $3300 $3300 $3300 "Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the 15% marginal rate affects income starting at the $7550 at which the 10% rate leaves off and continuing up to $30,650Step by Step Solution
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