Question

Problems - Financial Statements, Cash Flow, and Taxes 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Average Tax If Your Taxable Amount on the on the Excess over the Rate at Income Is Base of the Bracket Base (Marginal Rate) 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 37.0 37.0 Standard deduction for individual: $12,000 Married couples Filing Joint Returns You Pay This Plus This Percentage Average Tax If Your Taxable Amount on the on the Excess over the Rate at Income Is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $19,050 $0 10.0% 10.0% $19,050 - $77,400 1,905.00 12.0 11.5 $77,400 - $165,000 8,907.00 22.0 17.1 $165,000 - $315,000 28,179.00 24.0 20.4 $315,000 - $400,000 64,179.00 32.0 22.8 $400,000 $600,000 91,379.00 35.0 26.9 Over $600,000 161,379.00 37.0 37.0 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxa calculate 2018 Yah

Answer 1

Jenna a single taxpayer.

Her wages income: $134,000

Income from sale of stock: $4600

Standard deduction: ($12,000)

Net Income: $126,600

Taxable income: $126,600

She is a single taxpayer falls under the tax bracket of $82,500- $157,500

Tax amount will be: $14089.50 + excess over base (157500-82500=$75,000*24% = 18,000)

Total tax Jenne owe to IRS: $32,089.5