Use the marginal tax rates in the table to the right to calculate the income tax

Question

Use the marginal tax rates in the table to the right to calculate the income tax owed by the following person.

Single male, no dependents

Gross income: $ 80 comma 000

Adjustments:

$4000

Deductions:

$ 25 comma 000

mortgage interest

$4879

property taxes

$1000

charitable contributions

Tax credit: none

Tax Rate

Single

Married Filing

Separately

10%

$8025

up to $8025

15%

$8026

to

$32 comma 550

$8026 to $32,550

25%

$32 comma 551

to

$78 comma 850

$32,551 to $65,725

28%

$78 comma 851

to

$164 comma 550

$65,726 to $100,150

33%

$164 comma 551

to

$357 comma 700

$100,151 to $178,850

35%

$357 comma 700

more than $178,850

Standard Deduction

$5450

$5450

Exemptions (per person)

$3500

$3500

The income tax owed is

$nothing

.

(Round to two decimal places as needed.)

Enter your answer in the answer box.

Explanation / Answer

Gross income is 80000

Adjustment 4000 so Balance is 76000

Deduction 25000 balance 51000

Mortage interest 4879 balance 46121

Property tax 1000 balance 45121

Now he has to give charitable contribution it comes under 28% slab

So 28% of 45121 is 12633.88.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

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