Mr. Coleman, an unmarried individual, had the following income items:
| | | | |
| Interest income | $ | 13,800 | | |
| Ordinary loss from an S corporation | | (9,100 | ) | |
| Ordinary income from a partnership | | 173,000 | | |
| |
He had $28,000 itemized deductions and no dependents. Compute Mr. Coleman's passthrough income is qualified business income under Section 199A. Compute Mr. Colemans income tax. Assume the taxable year is 2018. Use Individual Tax Rate Schedules and Standard Deduction Table. (Round your answers to the nearest whole dollar amount.)
INDIVIDUAL TAX RATES Married Filing Jointly and Surviving Spouse If taxable income is: The tax is: Not over $19,050 Over $19,050 but not over $77,400 Over $77,400 but not over $165,000 Over $165,000 but not over $315,000 Over $315,000 but not over $400,000 Over $400,000 but not over $600,000 Over $600,000 10% of taxable income $1 ,905.00 + 1 2% of excess over $ 1 9,050 $8,907.00 22% of excess over $77,400 $281 79.00 + 24% of excess over $ 1 65,000 $641 79.00 + 32% of excess over $31 5,000 $91,379.00 + 35% of excess over $400,000 $ 1 6 1 ,379.00 + 37% of excess over $600,000 Marrled Fling Separately If taxable income is: Not over $9,525 Over $9,525 but not over $38,700 Over $38,700 but not over $82,500 Over $82,500 but not over $157,500 Over $157,500 but not over $200,000 Over $200,000 but not over $300,000 Over $300,000 The tax is: 10% of taxable income $952.50+ 12% of excess over $9,525 4,453.50 + 22% of excess over $38,700 $14,089.50 + 24% of excess over $82,500 $32,089.50 + 32% of excess over $157,500 $45,689.50 + 35% of excess over $200,000 $80,689.50 + 37% of excess over $300,000 Heads of Household If taxable Income Is: Not over $13,600 Over $13,600 but not over $51,800 Over $51,800 but not over $82,500 Over $82,500 but not over $157,500 Over $157,500 but not over $200,000 Over $200,000 but not over $500,000 Over $500,000 The tax Is: 10% of taxable income $1.360.00 + 1 2% of excess over $13,600 $5,944.00 + 22% of excess over $51 ,800 $12,698.00 + 24% of excess over $82,500 $30,698.00 + 32% of excess over $157,500 $44,298.00 + 35% of excess over $200,000 $1 49,298.00 + 37% of excess over $500,000 Single If taxable income is: Not over $9,525 Over $9,525 but not over $38,700 Over $38,700 but not over $82,500 Over $82,500 but not over $157,500 Over $157,500 but not over $200,000 Over $200,000 but not over $500,000 Over $500,000 The tax is: 10% of taxable income $952.50 + 12% of excess over $9,525 $4,453.50 22% of excess over $38,700 $14,089.50 + 24% of excess over $82,500 $32,089.50 32% of excess over $157,500 $45,689.50 35% of excess over $200,000 $150,689.50 + 37% of excess over $500,000 ESTATE AND TRUST TAX RATES If taxable Income Is: Not over $2,550 Over $2,550 not over $9.150 Over $9,150 not over $12,500 Over $12,500 The tax Is: 10% of taxable income $255 + 24% of the excess over $2,550 $ 1 ,839 + 35% of the excess over $9,150 $301 1 .50 + 37% of the excess over $ 1 2,500
