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Paige files as a head of household in 2021 and has taxable income of $125,000, including the sale of a stock held as an investment
Paige files as a head of household in 2021 and has taxable income of $125,000, including the sale of a stock held as an investment for two years at a gain of $14,000. Only one asset was sold during the year and Paige does not have any capital loss carryovers. LOADING...(Click the icon to view the tax rate schedule for the Head of Household filing status.) LOADING...(Click the icon to view the Preferential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends.) Read the requirementsLOADING.... Question content area bottom Part 1 Requirement a. What is the amount of 's tax liability? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest whole dollar.) Tax liability in 2021If taxable income is: The tax is: Not over $14,200. . . . . . . . . . . . . . . . . . . . . 10% of taxable income. Over $14,200 but not over $54,200. . . . . . $1,420.00 + 12% of the excess over $14,200. Over $54,200 but not over $86,350. . . . . . $6,220.00 + 22% of the excess over $54,200. Over $86,350 but not over $164,900. . . . . $13,293.00 + 24% of the excess over $86,350. Over $164,900 but not over $209,400. . . . $32,145.00 + 32% of the excess over $164,900. Over $209,400 but not over $523,600. . . . $46,385.00 + 35% of the excess over $209,400. Over $523,600. . . . . . . . . . . . . . . . . . . . . . . $156,355.00 + 37% of the excess over $523,600. pop-up content endsCapital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses: Ordinary income tax rates (up to % in ) for gains on assets held one year or less % rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: Preferencial Rate Single Filing Jointly* Head of Household 0% Up to $40,400 Up to $80,800 Up to $54,100 15% > $40,400 but n
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