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Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She received $108,000 in salary. She received
Mary Jarvis is a single individual who is working on filing her tax return for the previous year.
- She received $108,000 in salary.
- She received $14,000 of dividend income.
- She received $8,800 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 $5,100.
- She received $8,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,000.
- Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income.
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What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.
$__________
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What is her marginal tax rate? Round your answer to 1 decimal place.
________ %
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What is her average tax rate? Round your answer to 2 decimal places.
________ %
| Personal taxes | ||||
| Salary | $108,000.00 | Tax Table for Single Individuals: | ||
| Dividend Income | $14,000.00 | Taxable Income | Amount Paid on Base | Percentage on Excess over Base |
| Interest Income | $8,800.00 | $0.00 | $0.00 | 10.00% |
| LT Stock Sale | $22,500.00 | $9,225.00 | $922.50 | 15.00% |
| LT Stock Cost | $5,100.00 | $37,450.00 | $5,156.25 | 25.00% |
| ST Stock Sale | $8,000.00 | $90,750.00 | $18,481.25 | 28.00% |
| ST Stock Cost | $6,000.00 | $189,750.00 | $46,075.25 | 33.00% |
| Personal Exemption | $4,000.00 | $411,500.00 | $119,401.25 | 35.00% |
| Itemized Deductions | $7,500.00 | $413,200.00 | $119,996.25 | 39.60% |
| Apllicable Tax Rate on Dividends & LT Capital Gains | 15.00% | |||
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