148k views
1 vote
Jerry is single with taxable income of \( \$ 60,000 \). Use the 2021 tax rate schedule to calculate Jerry's tax liability.

User Amro
by
8.0k points

1 Answer

4 votes

Here's the breakdown:Taxable income: $60,000:

First, we need to determine which tax bracket Jerry falls into. The 2021 tax rate schedule for single filers is as follows:

- 10% on taxable income from $0 to $9,950

- 12% on taxable income from $9,951 to $40,525

- 22% on taxable income from $40,526 to $86,375

- 24% on taxable income from $86,376 to $164,925

- 32% on taxable income from $164,926 to $209,425

- 35% on taxable income from $209,426 to $523,600

- 37% on taxable income over $523,600

Based on Jerry's taxable income of $60,000, he falls into the 12% tax bracket. To calculate Jerry's tax liability, we will need to use a combination of the tax rates for the different brackets he falls into. Here's the breakdown:

- Jerry owes 10% on the first $9,950 of his taxable income, which amounts to $995.

- He owes 12% on the remaining $50,050 of his taxable income, which amounts to $6,006.
Adding these two amounts together, Jerry's total tax liability for 2021 would be $6,006 + $995 = $7,001. Therefore, Jerry's tax liability for the year is $7,001.

User Caltrop
by
8.2k points