Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information...
Excel Online Structured Activity: Personal taxes Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information She received $102,000 in salary She received $16,000 of dividend income, She received $4,600 of interest income on Home Depot bonds. She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,200. . She received $9,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,500 . Mary receives one exemption (54,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below 1 Open spreadsheet What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations $ b. What is her marginal tax rate? Round your answer to 1 decimal place 28 What is the average tax rate? Round your answer to 2 decimal places Table 3.5 2015 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9.225 $9,225-$37,450 $37.450-$90.750 $90.750-$189.750 $189.750-S411.500 $411,500-S$413.200 Over $413,200 You Pay This Amount on the Base of the Bracket $ 0 922.50 5.156.25 18,481.25 46,075.25 119.401.25 119.996.25 Plus This Percentage on the Excess over the Base Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 24.3 29.0 29.0 39.6 Married Couples Filing Joint Returns If Your Taxable Income Is Up to $18,450 $18.450-S74,900 $74,900-5151,200 SI51,200-$230,450 S230.450-S411,500 $411,500-$464,850 Over $464,850 You Pay This Amount on the Base of the Bracket S 0 1,845.00 10.312.50 29,387.50 51.577.50 111.324.00 129,996.50 Plus This Percentage on the Excess over the Base (Marcinal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 19.4 2214 27.1 28.0 39.6 3 Salary Tax Table for Single Individuals: Taxable income $16,000.00 $4,000.00 $22,500.00 $5,200.00 $9,000.00 $6,300.00 $4,000.00 $7500.00 15.00N Percentage Amount Paid on Excess on Base over Base $0.00 $0.00 10 009 $9.225.00 $922 50 15.00% $37.45000 $5,156 25 25 009 $90.750 00 $18.481 25 28.00% $189,750.00 $46075 25 33 009 S411,600 00 $119.401 25 35.00% $413 20000 $119.903 25 30.00 4 Dividend Income 5 Interest income 6 LT Stock Sale 7 LT Stock Cost 8 ST Stock Sale 9 ST Stock Cost 10 Personal Exemption 11 Homized Deductions 12 Aplicable Tax Rate on Dividends & LT Capital Gains 13 14 a. Calculation of Federal Tax Liability 15 Calculation of Taxable income 16. Salary 17 interest income 18 ST Capital Gains 19 Income before Exemption and Deductions 20 Personal Exemption 21 Homized Deductions 22 Taxable income before Dividends & LT Capital Gains 23 24 Taxes on Taxable incomo Before Dividends & LT Capital Gains 25 Tax Liability on Base of Bracket 26 Tax Liability on Excess over Base 27 Tax on Taxable income before Dividends & LT Capital Gains Formulas ONIA WNIA UNDA NA NA NA MNA MNIA NA NNA
