Question

#49 – Eric is single and has no dependents for 2019. He earned $60,000 and had deductions from gross income of $1,800 and itemized deductions of $12,400. Compute Eric’s income tax for the year using the Tax Rate Schedules.

              

#50 – Allen has taxable income of $75,475 for 2019. Using the Tax Rate Schedules in the Appendix, compute Allen’s income tax liability before tax credits and prepayments for each of the following filing statuses.

1. Married filing jointly              
2. Married filing separately
3. Single
4. Head of household

Answer 1

1. Income Tax = $5,934.50

Explanation;  

$60,000 - $1,800	$58,200
$58,200 - $12,400	$45,800
$45,800 - $39,475	$6,325
$6,325 * 22%	$1,391.5
$1,391.5 + $4,543	$5,934.50

From Tax Shedule 4,543 + 22 % of amount over $39,475.

2. a) Married Filing Jointly.

(75,475 - $19,400) = $56,075 ($56,075 × 12%) = $6,729 (1,940 + $6,729)= $8,669

b). Married Filing Separately

(75,475 - $39,475 ) = $36,000 ($36,000 × 22%) = $7,920 ($7,920 + $4,543) = $12,463

c). Single

($75,475 - $39,475) = $36,000 ($36,000 × 22%) = $7,920 ($7,920 + $4,543) = $12,463

d) Head of Household

($75,475 - $52,850) = $22,625 ($22,625 × 22%) = $4,977.50 ($4,977.50 +$6,065) = $11,042.50