Ms. E, a single individual, had $115,000 taxable income. Assume the taxable year

Question

Ms. E, a single individual, had $115,000 taxable income. Assume the taxable year is 2017. Compute her income tax assuming that:

a. Taxable income includes no capital gain. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Single If taxable income is: Not over $9,325 Over $9,325 but not over $37,950 Over $37,950 but not over $91,900 Over $91,900 but not over $191,650 Over $191,650 but not over $416,700 Over $416,700 but not over $418,400 Over $418,400 The tax is: 10% of taxable income $932.50 + 15% of excess over $9,325 $5,226.25 + 25% of excess over $37,950 $18,713.75 + 28% of excess over $91,900 $46,643.75 + 33% of excess over $191,650 $120,910.25 + 35% of excess over $416,700 $121,505.25 + 39.6% of excess over $418,400

Explanation / Answer

According to the table given, when the taxable income is 115000

it falls under the bracke taxable income over 91900 but not over 191650

and tax= 18713.75+ 28% of income over 91900

= 18713.75 + ( 115000-91900)*28%= 25181.75

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.