Question

As you know, a recent law has lowered the tax brackets. For 2018 income, for example, a married couple is in the 22% bracket until their income goes over $165,000. Above that, they enter the 24% bracket. Let's assume that you and your spouse had a combined taxable federal income of $165,000 in 2018, and you calculated your tax liability under the new law to be $22,900. At the last minute you realize that you actually made $175,000 in 2018 because you forgot about that $10,000 bonus you received for being employee-of-the-month. What would your new tax liability be after including this additional income. (You do not have to consult any tax tables to answer this question. Some simple math should be enough.)

Show work.

A. $23,300

B. $25,300

C. $31,300

D. $31,300

E. $42,300

Answer #1

Income up to $165,000 is taxed at 22%.

The tax calculated on income up to $165,000 is $22,900.

Now, there is additional income of $10,000.

Income above $165,000 is taxed at 24%.

So, these additional $10,000 would be taxed at 24%.

Additional tax = $10,000 * 0.24 = $2,400

Calculate the new tax liability -

New tax liability = Tax already calculated + Additional tax

New tax liability = $22,900 + $2,400 = $25,300

The new tax liability is $25,300.

**Hence, the correct answer is
the option (B).**

1. Calculate the tax for a married couple with taxable income of
$80,000, four-personal exemptions (self, spouse, and two children),
and $23,000 of itemized deductions (State and real estate taxes
$13,000, mortgage interest $10,000). How much would you owe in
taxes under the old rates in 2017 and now in 2018 under the new Tax
Cuts and Job Acts 2017 rates?
2. Calculate the tax for a married couple with taxable income of
$350,000, four-personal exemptions (self, spouse, and two...

You have a job with a gross pay of $63,000. Using the website
2018-2019 Federal Tax Brackets, answer the following
questions:
a) What is your tax bracket?
% 22
b) How much of your income is taxed at the following rates:
10% $ 9700
12% $ 39475
22% $ 40000
Both 12% and 22% is wrong what am I doing wrong when coming up
with the answer. please show work

QUESTION 1:
Imagine that you are married couple (filing jointly) and had a
household taxable income of $100,000 in 2016. Here is the relevant
tax table:
Which of the following statements is TRUE?
a) You pay 25% tax on your $100,000 income
b) You pay 15% income on the first $75,30169,000 and 25% on the
remaining amount
c) You pay 10% income on the first $75.301 and 25% on the
remaining amount
d) You pay 10% on the first $18,550...

Note: This problem is for the 2018 tax
year.
Alice J. and Bruce M. Byrd are married taxpayers who file a
joint return. Their Social Security numbers are 123-45-6789 and
111-11-1112, respectively. Alice's birthday is September 21, 1971,
and Bruce's is June 27, 1970. They live at 473 Revere Avenue,
Lowell, MA 01850. Alice is the office manager for Lowell Dental
Clinic, 433 Broad Street, Lowell, MA 01850 (employer identification
number 98-7654321). Bruce is the manager of a Super Burgers...

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