Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Terrell, an unmarried individual, has the following income items: Terrell's self - employment tax was $ 4 , 5 0 7 . Terrell had $

Terrell, an unmarried individual, has the following income items:
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.
PLEASE USE BELOW FIGURES:
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 $2,200.00+12% of excess over $22,000
Over $89,450 but not over $190,750 $10,294.00+22% of excess over $89,450
Over $190,750 but not over $364,200 $32,580.00+24% of excess over $190,750
Over $364,200 but not over $462,500 $74,208.00+32% of excess over $364,200
Over $462,500 but not over $693,750 $105,664.00+35% of excess over $462,500
Over $693,750 $186,601.50+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 $1,100.00+12% of excess over $11,000
Over $44,725 but not over $95,375 $5,147.00+22% of excess over $44,725
Over $95,375 but not over $182,100 $16,290.00+24% of excess over $95,375
Over $182,100 but not over $231,250 $37,104.00+32% of excess over $182,100
Over $231,250 but not over $346,875 $52,832.00+35% of excess over $231,250
Over $346,875 $93,300.75+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 $1,570.00+12% of excess over $15,700
Over $59,850 but not over $95,350 $6,868.00+22% of excess over $59,850
Over $95,350 but not over $182,100 $14,678.00+24% of excess over $95,350
Over $182,100 but not over $231,250 $35,498.00+32% of excess over $182,100
Over $231,250 but not over $578,100 $51,226.00+35% of excess over $231,250
Over $578,100 $172,623.50+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 $1,100.00+12% of excess over $11,000
Over $44,725 but not over $95,375 $5,147.00+22% of excess over $44,725
Over $95,375 but not over $182,100 $16,290.00+24% of excess over $95,375
Over $182,100 but not over $231,250 $37,104.00+32% of excess over $182,100
Over $231,250 but not over $578,125 $52,832.00+35% of excess over $231,250
Over $578,125 $174,238.25+37% of excess over $578,125
Married filing jointly and surviving spouses $27,700
Married filing separately 13,850
Head of household 20,800
Single 13,850
image text in transcribed

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

Auditing And Assurance Services A Systematic Approach

Authors: William Messier, Steven Glover, Douglas Prawitt

12th Edition

1264100671, 978-1264100675

More Books

Students also viewed these Accounting questions