If Your Taxable Income Is Up to $9,525 2018 Individual Tax Rates Single Individuals You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base (Marginal Rate) Average Tax Rate at Top of Bracket $9,525 - $38,700 $38,700 $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 $500,000 Over $500,000 $0 10.0% 10.0% 952.50 12.0 11.5 4,453.50 22.0 17.1 14,089.50 24.0 20.4 32,089.50 32.0 22.8 45,689.50 35.0 30.1 150,689.50 37.0 37.0 If Your Taxable You Pay This Amount on the Income Is Base of the Bracket Standard deduction for individual: $12,000 Married Couples Filing Joint Returns Plus This Percentage on the Excess over the Base (Marginal Rate) Average Tax Rate at Top of Bracket Up to $19,050 $19,050 - $77,400 $0 10.0% 10.0% 1,905.00 12.0 11.5 $77,400 $165,000 8,907.00 22.0 17.1 $165,000 - $315,000 28,179.00 24.0 20.4 $315,000 $400,000 64,179.00 32.0 22.8 $400,000 - $600,000 91,379.00 35.0 Over $600,000 161,379.00 37.0 26.9 37.0 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $140,000. She doesn't itemize deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $6,800. How much does Jenna owe to the IRS for taxes? Do not round intermediate calculations. Round your answer to the nearest cent. $ Corporate Corporations earn most of their income from operations; however, they may also receive interest and dividend income. Interest income is taxed as ordinary income; however, dividend income is taxed more favorably. 50% of dividends received is excluded from taxable income, while the remaining 50% is taxed at the ordinary tax rate. For businesses, interest payments are regarded as an expense so they are tax deductible; however, dividend payments are not tax deductible. Consequently, our tax system encourages debt financing over equity financing. Depreciation expense is tax deductible, so the larger the depreciation, the lower the taxable income, the lower the taxes, and the higher the firm's operating cash flow. Quantitative Problem: Andrews Corporation has income from operations of $237,000. In addition, it received interest income of $23,700 and received dividend income of $30,200 from another corporation. Finally, it paid $10,400 of interest income to its bondholders and paid $46,200 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax? Do not round intermediate calculations. Round your answer to the nearest dollar. $