Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sam has a gross income of $94,400, files her taxes as Single, and qualifies for a standard deduction of $12,400 and also earned a

image text in transcribed

Sam has a gross income of $94,400, files her taxes as Single, and qualifies for a standard deduction of $12,400 and also earned a $250 tax credit for an energy efficient water heater last year. Are the answers for her marginal and effective tax rates correct in the following calculations below? Tax Schedule (as pictured below) Single Sam's Tax rates Tax Rate Gross Income $94,400 10% Up to $13,600 10% on $13,600 12% $13,600 to $51,800 12% on $38,200 22% $51,801 to $82,500 24% 32% 35% 37% $500,001 or more Sam's taxes Taxes Owed $1360.00 $4,584.00 $82,501 to $157,500 $157,501 to $200,000 $200,001 to $500,000 22% on $30,200 Total Amount Owed Credits Final Tax Liability Gross Income Deductions Credits Marginal Tax Rate $6,644.00 $12,588.00 $250.00 $12,338.00 $94,400.00 $12,400.00 $250.00 22% Effective Tax Rate 13.10% Tax Schedule Gross Income: $ 94,400.00 Tax Rate Amount Taxes Owed Deductions: 10% 12% 22% $ 13,600.00 $ 1,360.00 $ 38,200.00 $ 4,584.00 $ 30,200.00 $ 6,644.00 Credits: Tax rate Single 10% Up to $13,600 12% $13,601 to $51,800 22% $51.801 to $82.500 24% $82.501 to $157,500 32% $157,501 to $200,000 Total Amount: Credits: 35% 37% $200,001 to $500,000 $500,001 or more Final Tax Liability: Effective Tax Rate: Marginal Tax Rate $12,588.00 $ 250.00 $12,338.00 13.10% 22% $ 12,400.00 $ 250.00

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_2

Step: 3

blur-text-image_3

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

Management Accounting Information for Decision-Making and Strategy Execution

Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young

6th Edition

137024975, 978-0137024971

More Books

Students also viewed these Accounting questions

Question

What is Larmors formula? Explain with a suitable example.

Answered: 1 week ago