Question

albert, who is in a 29% federal tax bracket, received $1,000 in dividends from plm inc., a manufacturer of hand-held devices incorporated in the u.s. no tax was withheld. what is the approximate federal tax payable on the dividends?

Answer 1

Albert, who received $1,000 in dividends and is in a 29% federal tax bracket, would owe approximately $290 in federal taxes on his dividend income. This calculation assumes no other tax rules or credits affect the liability.

Step-by-step explanation:

The question concerns the calculation of federal tax payable on dividends received by an individual taxpayer who is in a specific tax bracket. In this instance, Albert is in the 29% federal tax bracket and has received $1,000 in dividends. To calculate the federal tax payable on the dividends, if no tax was withheld and considering only the information provided about the tax bracket, you would multiply the amount of the dividends by the tax rate. Therefore, the calculation would be $1,000 (the amount of the dividends) × 0.29 (the 29% tax bracket).

Tax payable = $1,000 × 0.29 = $290

Thus, Albert would owe approximately $290 in federal taxes on his $1,000 dividend income. Keep in mind that this is a simplification, and actual tax liability may differ due to other tax rules or credits related to dividend income.