II. Monetary Policy and Explanation: ots. FEDERAL TAX SYSTEM. Tax 1. If the net profit from your business was $10,000 for this year and you added it to your personal taxable income of $135,000 for this year, according to the tax tables used in class, how much tax would you owe? a. Tax 1) Total Income (wages + capital gain profit from business + Interest income.) Exemption amount (Subtract from Total Income) Adjusted Gross Income (AGI) Family 1 (Does not understand the Tax System) Il Family 2 (DOES understand the Tax System) __Uses Standard Deduction amt. (SD) _Uses Itemized Deduction amt. (ID) Taxable income (AGI-SD) _Taxable Income (AGI-ID) Amount of Tax Liability THIS IS THE TAX THEY WILL OWE FOR 2015. (See Chart Below) Amount of Tax Liability THIS IS THE TAX THEY WILL OWE FOR 2015. (See Chart Below) Amount Withheld from Paychecks Amount Withheld Fren Paychecks _Tax Refund or Tax Liability Tax Refund or Tax Liability Chart to determine Tax Liability. (2015 Rates) A For earnings between $0.00 and $18.450, you'll pay 10% B. For earnings between $18,450.00 and $74,900, you'll pay 15% of the amount over $18450 plus $1,845.00 C. For eamings between $74,900.00 and $151,200, you'll pay 25% of the amount over $74900 plus $10,312.50 D. For eamings between $ 151,200.00 and $230,450, you'll pay 28% of the amount over $151200 plus $29,387.50 E. For earnings between $230,450.00 and $411,500, you'll pay 33% of the amount over $230450 plus $51,577.50 F. For earnings between $411,500.00 and $464,850, you'll pay 35% of the amount over $411500 plus $111,324.00 G. For earnings over $464,850.00, you'll pay 39.6% of the amount over $464850 plus $129,996.50