Question

Determine Tax Liability. Find the tax liabilities based on the taxable income of the following people:...

Determine Tax Liability. Find the tax liabilities based on the taxable income of the following people:

(a) married couple, $92,225

(b) married couple, $74,170

(c) single person, $27,880

(d) single person, $56,060

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Answer #1

I am making use of table 4.3 in your text book. Final answer is in bold and underline

(a) married couple, $92,225; Tax liability = $10,367.50 plus 25% of the excess over $75,300 = $10,367.50 + 25% x (92,225 - 75,300) = $ 14,599

(b) married couple, $74,170; Tax liability = $ 10,199

(c) single person, $27,880; Tax liability = $ 3,718

(d) single person, $56,060; Tax liability = $ 9,875

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