Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Personal exemptions is $ 4050 and $6300 for standard deductions for a single individual.Your annual income in 2016 was $49,355.You made the following pre-tax contributions

Personal exemptions is $ 4050 and $6300 for standard deductions for a single individual.Your annual income in 2016 was $49,355.You made the following pre-tax contributions for the year: $5822 to your 401(k), $1725 to your Health Flex Plan (FSA), and $2400 for preapprovedparking. UsingTable 5.1, determine how much more you would have paid in federal taxes ifyoudid not make those pre-tax contributions (using both the 2016 federal standard deduction andthe personal exemption).Choose all that apply

A.Federal Taxesduewithnopre-tax deductions: $ 6281.25

B.With no pre-tax deductions:$39,005 (taxable income)

C.You would be paying $$1027.55 more in federal taxes in 2016

D.Withpre-tax deductions: $29,058(taxable income)

E.Federal Taxesduewithpre-tax deductions: $3892.45

F.Federal Taxesduewithnopre-tax deductions: $5490.00

G.You would be paying $$1597.55 more in federal taxes in 2016

image text in transcribed
TABLE 5.1 Sample Tax Brackets and Federal Tax Rates (For Singles) Taxable Income Between ... Tax Due Is ... $0-$9325 10% of taxable income $9326-$37,950 $932.50 + 15% of amt over $9325 $37,951-$91,900 $5226.25 + 25% of amt over $37,950 $91,901-$191,650 $18,713.75 + 28% of amt over $91,900 $191,651-$416,700 $46,643.75 + 33% of amt over $191,650 $416,701-$418,400 $120,910.25 + 35% of amt over $416,700 $418,401 + $121,505.25 + 39.6% of amt over $418,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-12

Authors: Douglas McQuaig

10th Edition

1439038783, 978-1439038789

More Books

Students also viewed these Accounting questions

Question

5. List the disadvantages of traditional U.S. conglomerates.

Answered: 1 week ago

Question

2. It is the results achieved that are important.

Answered: 1 week ago