Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Refer to the individual rate schedules in Appendix C. Required: a. What are the tax liability, the marginal tax rate, and the average tax rate

image text in transcribed
image text in transcribed
image text in transcribed
Refer to the individual rate schedules in Appendix C. Required: a. What are the tax liability, the marginal tax rate, and the average tax rate for a married individual filing separately with $42,500 taxable income? b. What are the tax liability, the marginal tax rate, and the average tax rate for a single individual with $150,500 taxable income? c. What are the tax liability, the marginal tax rate, and the average tax rate for a head of household individual with $275,000 taxable income? d. What are the tax liability, the marginal tax rate, and the average tax rate for a married couple filing jointly with $630,000 taxable income? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D What are the tax liability, the marginal tax rate, and the average tax rate for a married indivi $42,500 taxable income? (Do not round your intermediate computations. Round "Tax liability "Average tax rate" to 2 decimal places.) Tax liability Marginal tax rate Average tax rate % % APPENDIX C 2021 Income Tax Rates INDIVIDUAL TAX RATES Married Filing Jointly and Surviving Spouse Ir taxable income is Not over $19.900 Over $19.900 but not over $81,050 Over $81,050 but not over $172.750 Over $172,750 but not over $329,850 Over $329,850 but not over $418,850 Over S418,850 but not over 5628,300 Over $628,300 The tax is 10% of taxable income $1.990.00 + 12% of excess over $19.900 $9,328.00 +22% of excess over $81.050 $29,502.00 +24% of excess over $172,750 S67 206.00 -32% of excess over $329,850 595,686,00 + 35% of excess over $418,850 $168.993.50 +37% of excess over $628,300 Married Filing Separately If taxable income is Not over $9.950 Over $9.950 but not over $40,525 Over $40.525 but not over $86,375 Over $86,375 but not over $164.925 Over $164.925 but not over $209,425 Over $209,425 but not over $314,150 Over $314.150 The tax is 1096 of taxable income 5995.00 +12% of excess over $9.950 $4.664.00 +22% of excess over $40,525 $14,751.00 +24% of excess over $86,375 $33,603.00 +32% of excess over $164.925 $47.843.00 +35% of excess over $209,425 584,496.75 +37% of excess over $314,150 Head of Household If taxable income is Not over $14,200 Over $14.200 but not over $54,200 Over $54,200 but not over $86,350 Over $86,350 but not over $164,900 Over $164,900 but not over $209,400 Over $209,400 but not over S523,600 Over S523,600 The taxis 10% of taxable income S1,420.00+ 12% of excess over $14,200 S6,220.00-22% of excess over $54,200 $13,293.00 -24% of excess over $86 350 $32,145.00+32% of excess over $164.900 $46,385,00+ 35% of excess over $209,400 $156,355.00 +37% of excess over $523,600 Single Ir taxable income is Not over $9.950 Over $9.950 but not over $40,525 Over $40.525 but not over $86,375 Over $86,375 but not over $164.925 Over $164,92S but not over $209,450 Over $209,450 but not over S523,600 Over S523,600 The tax is 10% of taxable income S995.00 +12% of excess over $9.950 $4,664.00 +22% of excess over $40.525 $14,751.00 +24% of excess over $86,375 $33,603.00 +32% of excess over $164.925 547,843.00 + 35% of excess over $209,425 $157,804.25 +37% of excess over S523,600 ESTATE AND TRUST TAX RATES If taxable income is Not over $2,650 Over $2,650 but not over $9,550 Over $9,550 but not over $13,050 Over $13,050 The tax is 10% of taxable income $265.00 +24% of excess over $2,650 $1,921,00 + 35% of excess over $9,550 $3,146,00 + 37% of excess over $13,050

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

Enterprise Compliance Risk Management An Essential Toolkit For Banks And Financial Services

Authors: Saloni Ramakrishna

1st Edition

1118550285, 978-1118550281

More Books

Students also viewed these Accounting questions