Problem $14-11($Static$)[$LO $14-3,14-4,14-5]$

Terrell, an unmarried individual, has the following income items:

Schedule C net profit $ $31,900$

Salary $55,120$

NOL carryforward deduction $(9,190)$

Interest income $725$

Terrell$$s self$-$employment tax was $$4,507.$ Terrell had $$6,270$ in itemized deductions and one dependent child $($age $9)$ who lives with Terrell. Terrell$$s Schedule C net business profit is qualified business income $($non$-$service$).$

Required:

Compute Terrell$$s income tax $($before credits$).$ Assume the taxable year is $2023.$ Use Individual Tax Rate Schedules and Standard Deduction Table.

Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.

Individual Tax Rate Schedules

Married Filing Jointly and Surviving Spouse

If taxable income is The tax is

Not over $$22,00010\%$ of taxable income

Over $$22,000$ but not over $$89,450$ $$2,200\mathrm{.}00+12\%$ of excess over $$22,000$

Over $$89,450$ but not over $$190,750$ $$10,294\mathrm{.}00+22\%$ of excess over $$89,450$

Over $$190,750$ but not over $$364,200$ $$32,580\mathrm{.}00+24\%$ of excess over $$190,750$

Over $$364,200$ but not over $$462,500$ $$74,208\mathrm{.}00+32\%$ of excess over $$364,200$

Over $$462,500$ but not over $$693,750$ $$105,664\mathrm{.}00+35\%$ of excess over $$462,500$

Over $$693,750$ $$186,601\mathrm{.}50+37\%$ of excess over $$693,750$

Married Filing Separately

If taxable income is The tax is

Not over $$11,00010\%$ of taxable income

Over $$11,000$ but not over $$44,725$ $$1,100\mathrm{.}00+12\%$ of excess over $$11,000$

Over $$44,725$ but not over $$95,375$ $$5,147\mathrm{.}00+22\%$ of excess over $$44,725$

Over $$95,375$ but not over $$182,100$ $$16,290\mathrm{.}00+24\%$ of excess over $$95,375$

Over $$182,100$ but not over $$231,250$ $$37,104\mathrm{.}00+32\%$ of excess over $$182,100$

Over $$231,250$ but not over $$346,875$ $$52,832\mathrm{.}00+35\%$ of excess over $$231,250$

Over $$346,875$ $$93,300\mathrm{.}75+37\%$ of excess over $$346,875$

Head of Household

If taxable income is The tax is

Not over $$15,70010\%$ of taxable income

Over $$15,700$ but not over $$59,850$ $$1,570\mathrm{.}00+12\%$ of excess over $$15,700$

Over $$59,850$ but not over $$95,350$ $$6,868\mathrm{.}00+22\%$ of excess over $$59,850$

Over $$95,350$ but not over $$182,100$ $$14,678\mathrm{.}00+24\%$ of excess over $$95,350$

Over $$182,100$ but not over $$231,250$ $$35,498\mathrm{.}00+32\%$ of excess over $$182,100$

Over $$231,250$ but not over $$578,100$ $$51,226\mathrm{.}00+35\%$ of excess over $$231,250$

Over $$578,100$ $$172,623\mathrm{.}50+37\%$ of excess over $$578,100$

Single

If taxable income is The tax is

Not over $$11,00010\%$ of taxable income

Over $$11,000$ but not over $$44,725$ $$1,100\mathrm{.}00+12\%$ of excess over $$11,000$

Over $$44,725$ but not over $$95,375$ $$5,147\mathrm{.}00+22\%$ of excess over $$44,725$

Over $$95,375$ but not over $$182,100$ $$16,290\mathrm{.}00+24\%$ of excess over $$95,375$

Over $$182,100$ but not over $$231,250$ $$37,104\mathrm{.}00+32\%$ of excess over $$182,100$

Over $$231,250$ but not over $$578,125$ $$52,832\mathrm{.}00+35\%$ of excess over $$231,250$

Over $$578,125$ $$174,238\mathrm{.}25+37\%$ of excess over $$578,125$

standard deductions

Married filing jointly and surviving spouses $$27,700$

Married filing separately $13,850$

Head of household $20,800$

Single $13,850$