Question

Manually calculate Federal tax liability on $152,272.48 using the Marginal Tax Rate Schedule for 2019 for a couple who filed Married filing jointly.

How do you get the 152,272.48 ?

	Salary Components	Dollars
1	Salary	$   98,000.00
1	Bonus	$   61,000.00
1	Term Ins	$        132.48
1	Sub total	$ 159,132.48
1	Pension	$     6,860.00
1	1040 Line 1	$ 152,272.48

If your taxable income is:		The tax is:
Over—	But not over—		of the amount over-
$0	$19,400	......... 10%	$0
19,400	78,950	$1,940.00 +12%	19,400
78,950	168,400	9,086.00 + 22%	78,950
168,400	321,450	28,765.00 + 24%	168,400
321 ,450	408,200	65,497.00 + 32%	321,450
408,200	612,350	93,257.00 + 35%	408,200
612,350	.............	164,709.50+37%	612,350

Answer 1

$152,272.48 comes by adding all the salary, bonus, term insurance and deduction of the pension amount from the sum total.

Adjusted Gross income = $152,272.48

$152,272.48 is adjusted gross income but Federal tax liability is calculated on Taxable income.

Taxable income = Adjusted gross income - Standard deduction = $152,272.48 - $24,400 = $127,872.48

Tax liability = $9,086 + 22% of ($127,872.48 - $78,950) = $19,848.95

Federal tax liability is $19,848.95

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