Determine the tax liability for tax year 2017 in each of the following instances

Question

Determine the tax liability for tax year 2017 in each of the following instances. In each case, assume the taxpayer can take only the standard deduction.

Use the appropriate Tax Tables and Tax Rate Schedules.

Tax table link: http://lectures.mhhe.com/connect/cruz11e_1259713733/2017_tax_table.pdf

Tax Rate Schedules Link: http://lectures.mhhe.com/connect/cruz11e_1259713733/2017_tax_rate_schedule.pdf

A single taxpayer, not head of household, with AGI of $23,493 and one dependent.

A single taxpayer, not head of household, with AGI of $169,783 and no dependents. (Round your intermediate computations to two decimal places and final answer to the nearest dollar amount.)

A married couple filing jointly with AGI of $39,945 and two dependents.

A married couple filing jointly with AGI of $162,288 and three dependents. (Round your intermediate computations to two decimal places and final answer to the nearest dollar amount.)

A married couple filing jointly with AGI of $301,947 and one dependent. (Round your intermediate computations to two decimal places and final answer to the nearest dollar amount.)

A taxpayer filing married filing separately with AGI of $68,996 and one dependent.

A qualifying widow, age 66, with AGI of $49,240 and one dependent.

A head of household with AGI of $14,392 and two dependents.

A head of household with AGI of $59,226 and one dependent.

(For all requirements, use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000.)

Tax Liability

a.

b.

c.

d.

e.

f.

g.

h.

i.

Explanation / Answer

Part A

Taxable income = 23493- standard deduction 6350 - personal exemption and dependency exemption (2*4050) = 9043

Tax liability = 9043*10% = 904.3 = 904

Part B

Taxable income = 169783 - standard deduction 6350 - personal exemption and dependency exemption 4050 = 159383

Tax liability = 18713.75 - (159383-91900)*15% = 28837.20 = 28837

Part C

Taxable income = 39455 - standard deduction 12700 - personal exemption and dependency exemption 4050*4 = 10555

Tax liability = 10555 * 10% = 1055.5 = 1056

Part D

Taxable income = 162288 - standard deduction 12700 - personal and dependency exemption (4050*5) = 129388

Tax liability = 10452.50 + (129388-75900)*25% = 23824.50 = 23825

Part E

Taxable income = 301947 - standard deduction 12700 - personal and dependency exemption (4050*3) = 277097

Tax liability = 52222.50 + (277097- 233350)*33% = 66659

Part F

Taxable income = 68996 - standard deduction 6350 - personal and dependency exemption (4050*2) = 54546

Tax liability = 5226.25 + (54546-37950)*25% = 9375.25 = 9375

Part G

Taxable income = 49240 - standard deduction (12700) - personal and dependency exemption (4050*3) = 24390

Tax liability = 1865 + (24390-18650)*15% = 2726

Part H

Taxable income = 14392 - standard deduction 9350 - personal and dependency exemption (4050*3) = -7108

Tax liability = 0

Part I

Taxable income = 59226 - standard deduction 9350 - personal and dependency exemption (4050*2) = 41776

Tax liability = 1335 + (41776-13350)*15% = 5598.90 = 5599

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