Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information applies to the questions displayed below.] Henrich is a single taxpayer. In 2023, his taxable income is $537,500. What are his income

The following information applies to the questions displayed below.]

Henrich is a single taxpayer. In 2023, his taxable income is $537,500. What are his income tax and net investment income tax liability in each of the following alternative scenarios?

2023 Tax Rate Schedules

IndividualsSchedule X-Single

If taxable income is over: But not over: The tax is:
$ 0 $ 11,000 10% of taxable income
$ 11,000 $ 44,725 $1,100 plus 12% of the excess over $11,000
$ 44,725 $ 95,375 $5,147 plus 22% of the excess over $44,725
$ 95,375 $ 182,100 $16,290 plus 24% of the excess over $95,375
$ 182,100 $ 231,250 $37,104 plus 32% of the excess over $182,100
$ 231,250 $ 578,125 $52,832 plus 35% of the excess over $231,250
$ 578,125 $174,238.25 plus 37% of the excess over $578,125

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse

If taxable income is over: But not over: The tax is:
$ 0 $ 22,000 10% of taxable income
$ 22,000 $ 89,450 $2,200 plus 12% of the excess over $22,000
$ 89,450 $ 190,750 $10,294 plus 22% of the excess over $89,450
$ 190,750 $ 364,200 $32,580 plus 24% of the excess over $190,750
$ 364,200 $ 462,500 $74,208 plus 32% of the excess over $364,200
$ 462,500 $ 693,750 $105,664 plus 35% of the excess over $462,500
$ 693,750 $186,601.5 plus 37% of the excess over $693,750

Schedule Z-Head of Household

If taxable income is over: But not over: The tax is:
$ 0 $ 15,700 10% of taxable income
$ 15,700 $ 59,850 $1,570 plus 12% of the excess over $15,700
$ 59,850 $ 95,350 $6,868 plus 22% of the excess over $59,850
$ 95,350 $ 182,100 $14,678 plus 24% of the excess over $95,350
$ 182,100 $ 231,250 $35,498 plus 32% of the excess over $182,100
$ 231,250 $ 578,100 $51,226 plus 35% of the excess over $231,250
$ 578,100 $172,623.5 plus 37% of the excess over $578,100

Schedule Y-2-Married Filing Separately

If taxable income is over: But not over: The tax is:
$ 0 $ 11,000 10% of taxable income
$ 11,000 $ 44,725 $1,100 plus 12% of the excess over $11,000
$ 44,725 $ 95,375 $5,147 plus 22% of the excess over $44,725
$ 95,375 $ 182,100 $16,290 plus 24% of the excess over $95,375
$ 182,100 $ 231,250 $37,104 plus 32% of the excess over $182,100
$ 231,250 $ 346,875 $52,832 plus 35% of the excess over $231,250
$ 346,875 $93,300.75 plus 37% of the excess over $346,875

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 - $89,250 $0 - $44,625 $0 - $44,625 $0 - $59,750 $0 - $3,000
15% $89,251 - $553,850 $44,626 - $276,900 $44,626 - $492,300 $59,751 - $523,050 $3,001 - $14,650
20% $553,851+ $276,901+ $492,301+ $523,051+ $523,051+

Note: Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final answers to 2 decimal places.

image text in transcribed

image text in transcribed

image text in transcribedimage text in transcribed

a. All of his income is salary from his employer. Assume his modified AGl is $570,000. d. Henrich has $198,750 of taxable income, which includes $51,500 of long-term capital gain that is taxed at preferential rates. Assume his modified AG is $217,500. c. His $537,500 of taxable income includes $54,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGl is $570,000. b. His $537,500 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $570,000

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

Students also viewed these Accounting questions

Question

Explain the steps involved in training programmes.

Answered: 1 week ago

Question

What are the need and importance of training ?

Answered: 1 week ago