Question

Use the 2019 Tax Rate Schedules to determine the tax liability for each of the following cases.

A. Single taxpayer, taxable income of $38,862.

B. Single taxpayer, taxable income of $89,889.

C. Married taxpayers, who file a joint return, have taxable income of $89,889.

D. Married taxpayers, who file a joint return, have taxable income of $61,229.

E. Married taxpayers, who file a joint return, have taxable income of $38,862.

F. Single taxpayer, taxable income of $61,229.

Please show work

Answer 1

All amounts are in $

A. Single tax payer, taxable income of $38,862

Tax = 12% x (38,862 - 9,700) + 10% x 9700 = 4,469.44

B. Singel tax payer, taxable income of $89,889

Tax = 24% x (89,889-84,200) + 22% x (84,200-39,475) + 12% x (39,475-9,700) + 10% x 9,700

= 1,365.36 + 9,839.5 + 3,573 + 970

= 15,747.86

C. Married tax payer filing joint return with taxable income $89,889

Tax = 22% x (89,889-78,950) + 12% x (78,950-19,400) + 10% x 19,400

= 11,492.58

D. Married tax payer filing joint tax return with taxable income of $61,229

Tax = 12% x (61,229 - 19,400) + 10% x 19,400

= 6,959.48

E. Married tax payer filing joint tax return with taxable income of $38,762

Tax = 12% x (38,862 - 19,400) + 10% x 19,400

= 4,275.44

F. Single tax payer with taxable income of $61,229

Tax = 22% x (61,229-39,475) + 12% x (39,475-9,700) + 10% x 9,700

= 9,328.88

Note : Tax is calculated using slab rates given by IRS for 2019