Question

2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628.50 plus 35% of the excess over $204,100 $510,300 $153,798.50 plus 37% of the excess over $510,300

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Solution: Answers are highlighted in Yellow: As per Tax year 2019, Answer will be different for different tax year: Particulars Amount Explanation 1) Taxable income 42700 2) Preferentially taxed income 3) Income taxed at ordinary rates 42700 4) Tax on income taxed at ordinary rates 5252.50 (4543)+(42700-39475)*22% 5) Tax on preferentially taxed income 6) Tax Liability 5252.50 (4+5) 7) Net Investment income tax 0.00 Not Applicable 8) Total Income & Net Investment tax 5252.50 (6+7) b) Particulars 1) Taxable income 2) Preferentially taxed income 3) Income taxed at ordinary rates 4) Tax on income taxed at ordinary rates 5) Tax on preferentially taxed income 6) Tax Liability 7) Net Investment income tax 8) Total Income & Net Investment tax Amount Explanation 42700 4500 38200 4390.00 (970)+(38200-9700) *12% 498.75 (42700-39375) *15% 4888.75(4+5) 0.00 Not Applicable 4888.75 (6+7) Particulars 1) Taxable income 2) Preferentially taxed income 3) Income taxed at ordinary rates 4) Tax on income taxed at ordinary rates 5) Tax on preferentially taxed income 6) Tax Liability 7) Net Investment income tax 8) Total Income & Net Investment tax Amount Explanation 42700 6600 36100 4138.00 (970)+(36100-9700)*12% 498.75 (42700-39375) *15% 4636.75(4+5) 0.00 Not Applicable 4636.75 (6+7)