Using the tax table, determine the amount of taxes for the following situations:
|Rate on Taxable Income||Single Taxpayers||Married Taxpayers Filing Jointly||Heads of Household|
|10%||Up to $9,075||Up to $18,150||Up to $12,950|
|39.6||Over $406,751||Over $457,601||Over $432,201|
a. A head of household with taxable income of $55,000
b. A single person with taxable income of $35,000
c. Married taxpayers filing jointly with a taxable income of $72,000
Show work to explain answers.
Marginal Tax Rate:
The United States has a marginal tax rate for individual income tax purposes. This means that a portions of your income are taxed in different tax brackets. If you make above a certain amount only the additional income will be taxed in the higher bracket.
Answer and Explanation:
- To calculate the taxes for each situation listed below we must multiply the taxable income by the marginal tax rate. The first portion of the taxable...
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from Intro to Business: Help and ReviewChapter 24 / Lesson 8