Required information Skip to question The following information applies to the questions displayed below Henrich is a single taxpayer In 2021, his taxable income is $457,000 What is his income tax and net investment income tax liability in each of the following alternative scenarios Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference (Do not round intermediate calculations Leave no answer blank Enter zero if applicable Round your final answers to 2 decimal places ) a All of his income is salary from his employer b His $457,000 of taxable income includes $2,000 of long term capital gain that is taxed at preferential rates c His $457,000 of taxable income includes $53,000 of long term capital gain that is taxed at preferential rates d Henrich has $198,500 of taxable income, which includes $51,400 of long term capital gain that is taxed at preferential rates Assume his modified AGI is $210,000 2021 Tax Rate Schedules Individuals Schedule X Single If taxable income is over But not over The tax is $ 0 $ 9,950 10 of taxable income $ 9,950 $ 40,525 $995 plus 12 of the excess over $9,950 $ 40,525 $ 86,375 $4,664 plus 22 of the excess over $40,525 $ 86,375 $ 164,925 $14,751 plus 24 of the excess over $86,375 $ 164,925 $ 209,425 $33,603 plus 32 of the excess over $164,925 $ 209,425 $ 523,600 $47,843 plus 35 of the excess over $209,425 $ 523,600 $157,804 25 plus 37 of the excess over $523,600 Schedule Y 1 Married Filing Jointly or Qualifying Widow(er) If taxable income is over But not over The tax is $ 0 $ 19,900 10 of taxable income $ 19,900 $ 81,050 $1,990 plus 12 of the excess over $19,900 $ 81,050 $ 172,750 $9,328 plus 22 of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24 of the excess over $172,750 $ 329,850 $ 418,850 $67,206 plus 32 of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35 of the excess over $418,850 $ 628,300 $168,993 50 plus 37 of the excess over $628,300 Schedule Z Head of Household If taxable income is over But not over The tax is $ 0 $ 14,200 10 of taxable income $ 14,200 $ 54,200 $1,420 plus 12 of the excess over $14,200 $ 54,200 $ 86,350 $6,220 plus 22 of the excess over $54,200 $ 86,350 $ 164,900 $13,293 plus 24 of the excess over $86,350 $ 164,900 $ 209,400 $32,145 plus 32 of the excess over $164,900 $ 209,400 $ 523,600 $46,385 plus 35 of the excess over $209,400 $ 523,600 $156,355 plus 37 of the excess over $523,600 Schedule Y 2 Married Filing Separately If taxable income is over But not over The tax is $ 0 $ 9,950 10 of taxable income $ 9,950 $ 40,525 $995 plus 12 of the excess over $ 9,950 $ 40,525 $ 86,375 $4,664 plus 22 of the excess over $40,525 $ 86,375 $ 164,925 $14,751 plus 24 of the excess over $86,375 $ 164,925 $ 209,425 $33,603 plus 32 of the excess over $164,925 $ 209,425 $ 314,150 $47,843 plus 35 of the excess over $209,425 $ 314,150 $84,496 75 plus 37 of the excess over $314,150 Tax Rates for Net Capital Gains and Qualified Dividends Rate Taxable Income Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates 0 $0 $80,800 $0 $40,400 $0 $40,400 $0 $54,100 $0 $2,700 15 $80,801 $501,600 $40,401 $250,800 $40,401 $445,850 $54,101 $473,750 $2,701 $13,250 20 $501,601 $250,801 $445,851 $473,751 $13,251 This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose)

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Required information Skip to question [The following information applies to the questions displayed below.] Henrich is a single taxpayer. In 2021, his taxable income is

Required information

Skip to question

[The following information applies to the questions displayed below.]

Henrich is a single taxpayer. In 2021, his taxable income is $457,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. (Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places.)

a. All of his income is salary from his employer.

b. His $457,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates.

c. His $457,000 of taxable income includes $53,000 of long-term capital gain that is taxed at preferential rates.

d. Henrich has $198,500 of taxable income, which includes $51,400 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000.

2021 Tax Rate Schedules

Individuals

Schedule X-Single

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,950	10% of taxable income
$ 9,950	$ 40,525	$995 plus 12% of the excess over $9,950
$ 40,525	$ 86,375	$4,664 plus 22% of the excess over $40,525
$ 86,375	$ 164,925	$14,751 plus 24% of the excess over $86,375
$ 164,925	$ 209,425	$33,603 plus 32% of the excess over $164,925
$ 209,425	$ 523,600	$47,843 plus 35% of the excess over $209,425
$ 523,600		$157,804.25 plus 37% of the excess over $523,600

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$ 0	$ 19,900	10% of taxable income
$ 19,900	$ 81,050	$1,990 plus 12% of the excess over $19,900
$ 81,050	$ 172,750	$9,328 plus 22% of the excess over $81,050
$ 172,750	$ 329,850	$29,502 plus 24% of the excess over $172,750
$ 329,850	$ 418,850	$67,206 plus 32% of the excess over $329,850
$ 418,850	$ 628,300	$95,686 plus 35% of the excess over $418,850
$ 628,300		$168,993.50 plus 37% of the excess over $628,300

Schedule Z-Head of Household

If taxable income is over:	But not over:	The tax is:
$ 0	$ 14,200	10% of taxable income
$ 14,200	$ 54,200	$1,420 plus 12% of the excess over $14,200
$ 54,200	$ 86,350	$6,220 plus 22% of the excess over $54,200
$ 86,350	$ 164,900	$13,293 plus 24% of the excess over $86,350
$ 164,900	$ 209,400	$32,145 plus 32% of the excess over $164,900
$ 209,400	$ 523,600	$46,385 plus 35% of the excess over $209,400
$ 523,600		$156,355 plus 37% of the excess over $523,600

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,950	10% of taxable income
$ 9,950	$ 40,525	$995 plus 12% of the excess over $ 9,950
$ 40,525	$ 86,375	$4,664 plus 22% of the excess over $40,525
$ 86,375	$ 164,925	$14,751 plus 24% of the excess over $86,375
$ 164,925	$ 209,425	$33,603 plus 32% of the excess over $164,925
$ 209,425	$ 314,150	$47,843 plus 35% of the excess over $209,425
$ 314,150		$84,496.75 plus 37% of the excess over $314,150

Tax Rates for Net Capital Gains and Qualified Dividends

Rate*	Taxable Income
Rate*	Married Filing Jointly	Married Filing Separately	Single	Head of Household	Trusts and Estates
0%	$0 - $80,800	$0 - $40,400	$0 - $40,400	$0 - $54,100	$0 - $2,700
15%	$80,801 - $501,600	$40,401 - $250,800	$40,401 - $445,850	$54,101 - $473,750	$2,701 - $13,250
20%	$501,601+	$250,801+	$445,851+	$473,751+	$13,251+

*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose).