Question
In: Accounting
2013 Individual Tax Rates Single Individuals If a Corporation's Taxable Income Is It Pays This Amount...
| 2013 Individual Tax Rates | |||
| Single Individuals | |||
If a Corporation's Taxable Income Is |
It Pays This Amount on the Base of the Bracket |
Plus This Percentage on the Excess over the Base (Marginal Rate) |
Average Tax Rate at Top of Bracket |
| Up to $8,925 | $0 | 10.0% | 10.0% |
| $8,925 - $36,250 | 892.50 | 15.0 | 13.8 |
| $36,250 - $87,850 | 4,991.25 | 25.0 | 20.4 |
| $87,850 - $183,250 | 17,891.25 | 28.0 | 24.3 |
| $183,250 - $398,350 | 44,603.25 | 33.0 | 29.0 |
| $398,350 - $400,000 | 115,586.25 | 35.0 | 29.0 |
| Over $400,000 | 116,163.75 | 39.6 | 39.6 |
Standard deduction for individual: $6,100
| Married Couples Filing Joint Returns | |||
If a Corporation's Taxable Income Is |
It Pays This Amount on the Base of the Bracket |
Plus This Percentage on the Excess over the Base (Marginal Rate) |
Average Tax Rate at Top of Bracket |
| Up to $17,850 | $0 | 10.0% | 10.0% |
| $17,850 - $72,500 | 1,785.00 | 15.0 | 13.8 |
| $72,500 - $146,400 | 9,982.50 | 25.0 | 19.4 |
| $146,400 - $223,050 | 28,457.50 | 28.0 | 22.4 |
| $223,050 - $398,350 | 49,919.50 | 33.0 | 27.1 |
| $398,350 - $450,000 | 107,768.50 | 35.0 | 28.0 |
| Over $450,000 | 125,846.00 | 39.6 | 39.6 |
Standard deduction for married couples filing jointly: $12,200
Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2013, she earned wages of $136,000. She doesn't itemize deductions, so she will take the standard deduction and her personal exemption to calculate 2013 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $7,500. How much does Jenna owe to the IRS for taxes? Round your intermediated and final answers to the nearest cent.
Solutions
Expert Solution
Step 1 : Determining that Relavent standard deduction for an individual is $6,100 and personal exemption is $3,900 for year of 2013
Step 2: Calculation of Taxable income
| Particulars | Amounts in $ |
|
Wages |
$136,000 |
| Less : Standard Deduction | $6,100 |
| Less: Personal Exemption | $3,900 |
| Taxable Income | $1,26,000 |
Step: 3 Calculation of federal income tax according to individual income tax schedule of the year 2013
Tax on ordinary income = $17,891.25 + ($1,26,000 - $87,850) *28%
= $17,891.25 + $10,682
= $28,573.25
Step: 4 Calculation of Long term capital gain
Capital gain Tax= $7,500*15%
= $1,125
Hence Total tax Dues = $28,573.25 + $1,125 = $29,698.25
ekkarill92 answered 2 years agoRelated Solutions
2013 Individual Tax Rates Single Individuals If a Corporation's Taxable Income Is It Pays This Amount...
2013 Individual
Tax Rates
Single
Individuals
If a Corporation's Taxable Income Is
It Pays This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $8,925
$0
10.0%
10.0%
$8,925 - $36,250
892.50
15.0
13.8
$36,250 - $87,850
4,991.25
25.0
20.4
$87,850 - $183,250
17,891.25
28.0
24.3
$183,250 - $398,350
44,603.25
33.0
29.0
$398,350 - $400,000
115,586.25
35.0
29.0
Over $400,000
116,163.75
39.6...
2018 Individual Tax Rates Single Individuals If Your Taxable Income Is You Pay This Amount on...
2018 Individual Tax Rates
Single Individuals
If Your Taxable Income Is
You Pay This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $9,525
$0
10.0
%
10.0
%
$9,525 - $38,700
952.50
12.0
11.5
$38,700 - $82,500
4,453.50
22.0
17.1
$82,500 - $157,500
14,089.50
24.0
20.4
$157,500 - $200,000
32,089.50
32.0
22.8
$200,000 - $500,000
45,689.50
35.0
30.1
Over $500,000
150,689.50...
2013 Corporate Tax Rates If Your Taxable Income Is You Pay This Amount on the Base...
2013 Corporate
Tax Rates
If Your Taxable Income Is
You Pay This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base (Marginal Rate)
Average Tax
Rate at
Top of Bracket
Up to $50,000
$0
15.0%
15.0%
$50,000 - $75,000
7,500
25.0
18.3
$75,000 - $100,000
13,750
34.0
22.3
$100,000 - $335,000
22,250
39.0
34.0
$335,000 - $10,000,000
113,900
34.0
34.0
$10,000,000 - $15,000,000
3,400,000
35.0
34.3
$15,000,000 - $18,333,333
5,150,000
38.0
35.0
Over...
Taxation table Income Tax Standard personal income tax rates Income band Taxable amount Rate K1 to...
Taxation table
Income Tax
Standard personal income tax rates
Income band
Taxable amount
Rate
K1 to K39,600
first K39,600
0%
K39,601 to 49,200
next K9,600
25%
K49,201 to K74,400
next K25,200
30%
Over K74,400
37.5%
Income from farming for individuals
K1 to K39,600
first K39,600
0%
Over K39,600
10%
Company Income Tax rates
On income from manufacturing and other
35%
On income from farming
10%
Capital Allowances
Implements, plant and machinery and commercial vehicles:
Wear and Tear Allowance –
Standard...
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