Over $450,000 125,846.00 39.6 39.6 Standard deduction for married couples filing jointly: $12,200 Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2013, she earned wages of $135,000. She doesn't itemize deductions, so she will take the standard deduction and her personal exemption to calculate 2013 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $4,300. How much does Jenna owe to the IRS for taxes? Round your intermediated and final answers to the nearest cent. Hide Feedback Partially Correct Check My Work Feedback Review the definition of taxable income. Identify the relevant standard deduction and personal exemption amounts in order to calculate taxable income. Review the 2013 individual tax schedule and correctly use it to calculate taxes on ordinary income Don't forget to calculate the tax on capital gains and include it in the amount of federal taxes owed. Trom Tederal taxes as ordinary income v while dividends are taxed at the same rate as long-term capital gains Generally, interest payments are not tax deductible for individuals exce interest on home mortgages within certain limits. Projected 2013 tax rate schedules are for single individuals and married couples filing jointly. 2013 Individual Tax Rates Single Individuals Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 If a Corporation's Taxable Income Is Up to $8,925 $8,925 - $36,250 $36,250 - $87,850 $87,850 - $183,250 $183,250 - $398,350 $398,350 - $400,000 Over $400,000 It Pays This Amount on the Base of the Bracket $0 892.50 4,991.25 17,891.25 44,603.25 115,586.25 116,163.75 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 25.0 28.0 24.3 33.0 29.0 35.0 29.0 39.6 39.6 Standard deduction for individual: $6,100