Question

Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the filing status of married filing jointly. Use the appropriate Tax Tables or Tax Rate Schedules.

1. Taxable income of $62,449 that includes a qualified dividend of $560.
2. Taxable income of $12,932 that includes a qualified dividend of $322.
3. Taxable income of $144,290 that includes a qualified dividend of $4,384. (Round your intermediate computations to 2 decimal places and final answer to the nearest whole dollar amount.)
4. Taxable income of $43,297 that includes a qualified dividend of $971.
5. Taxable income of $262,403 that includes a qualified dividend of $12,396. (Round your intermediate computations to 2 decimal places and final answer to the nearest whole dollar amount.)

(For all requirements, use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000.)

Answer 1

		TAX SLABS
	Rate	Income tax Bracket for Married Filing jointly
	10%	0-$19750
	12%	$19751-$80250
	22%	$80251-$171050
	24%	$171051-$326600
	32%	$326601-$414700
	35%	$414701-$622050
	37%	$622051 or more
case
1	Having income of $ 62449 which includes dividend of $ 560
	you will not need to pay any taxes on qualified dividends as long as you have $38,600 or less of ordinary income
	If you have between $38,600 and $425,800 of ordinary income, then you will pay a tax rate of 15% on qualified dividends.
	The rate for $425,801 or more is 20%.
	hence as in this case the income is more than $38600 so the dividend of $ 560 is taxable at the 15% rate
		Income	$62,449
	Less:	Dividend	$560
			$61,889
	As per the tax table shown above the total tax payable on $ 61,889 is $ 7032
	and on dividend income of $560 is taxable at 15% is $ 84
	hence total tax payable is $7116
2	Having income of $ 12932 which includes dividend of $ 322
	As the income is below the slab limits hence dividend and income both are not taxable.
3	Having income of $ 144290 which includes dividend of $ 4384
		Income	$144,290
	Less:	Dividend	$4,384
			$139,906
	As per the tax table shown above the total tax payable on $ 139906 is $ 16087
	and on dividend income of 4384 is taxable at 15% is $ 658
	hence total tax payable is $16745
4	Having income of $ 43279 which includes dividend of $ 971
		Income	$43,279
	Less:	Dividend	$971
			$42,308
	As per the tax table shown above the total tax payable on $ 42308 is $ 6528
	and on dividend income of $971 is taxable at 15% is $ 146
	hence total tax payable is $6674
5	Having income of $ 262403 which includes dividend of $ 12396
		Income	$262,403
	Less:	Dividend	$12,396
			$250,007
	As per the tax table shown above the total tax payable on $ 250007 is $ 47593
	and on dividend income of $12396 is taxable at 15% is $ 1860
	hence total tax payable is $49453
	hope you find your answer here.