Final answer:
To compute taxes owed including a tax credit, one would reference the applicable marginal tax rates and calculate based on the individual's income and the corresponding tax bracket, subtracting any tax credits afterward. Without the full tax table, only a hypothetical computation can be presented.
Step-by-step explanation:
To accurately compute the taxes owed by Paul, who is the head of the household with a taxable income of $90,000 and is entitled to an $8000 tax credit, one would need to refer to the tax table applicable to the current year. However, the exercise references marginal tax rates without providing the full table, which normally would detail the tax owed based on different income brackets. Here's a simplified example based on the marginal tax rate workings explained:
Let's say the tax table is such that an income of $90,000 falls into a tax bracket with a base tax of $10,000 for the first $50,000 and a marginal tax rate of 20% for the remaining income over $50,000. In that case, Paul's tax would be computed as follows:
- Tax on the first $50,000: $10,000
- Tax on the remaining $40,000 ($90,000 - $50,000): 20% of $40,000 = $8,000
- Total tax before credits: $10,000 + $8,000 = $18,000
- Total tax after applying the $8,000 credit: $18,000 - $8,000 = $10,000
Remember, this is just an illustrative example; the actual tax owed would be based on the specific tax brackets and rates outlined for the fiscal year in question.