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Need an answer in clear writing 6) Table 1. Single Taxable Income Tax Brackets and Rates, 2016 If taxable income is over- $0 $9,275 $37,650
Need an answer in clear writing
6) Table 1. Single Taxable Income Tax Brackets and Rates, 2016 If taxable income is over- $0 $9,275 $37,650 $91,150 $190,150 $413,350 $415,050 but not over, the tax is: $9,275 10% of the amount over $0 $37,650 $927.50 plus 15% of the amount over $9,275 $91,150 $5,183.75 plus 25% of the amount over $37,650 $190,150 $18,558.75 plus 28% of the amount over $91,150 $413,350 $46,278.75 plus 33% of the amount over $190,150 $415,050 $119,934.75 plus 35% of the amount over $413,350 no limit $120,529.75 plus 39.6% of the amount over $415,050 a) Using the tax schedule above, calculate the taxes that should be paid for an income of $92,000: Amount 1040-EZ Line(s) Description 1 and 4 Wages, salaries, and tips. Adjusted gross income (AGI) 5 Standard deduction and exemption (single, nondependent) 6 Subtract line 5 from line 4. Taxable income 10 and 12 Total Tax (from schedule) Effective tax rate (tax as a percentage of all income) $92,000 $10,350 b) Let's see if we can work backwards. Suppose someone paid $15,700 in taxes. What could this person's adjusted gross income be? Amount 1040-EZ Line(s) Description 1 and 4 Wages, salaries, and tips. Adjusted gross income (AGI) 5 Standard deduction and exemption (single, nondependent) Subtract line 5 from line 4. Taxable income 10 and 12 Total Tax (from schedule) Effective tax rate (tax as a percentage of all income) $10,350 6 $15,700Step by Step Solution
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