Question

12. Use the following tax table to calculate the taxable income for and tax owed by the taxpayer described below.Tax RateSingle or Married Filing SeparatelyMarried Filing JointlyHead of Household10%up to $9,875up to $19,750up to $14,10012%$9,875 to $40,125$19,750 to $80,250$14,100 to $53,70022%$40,125 to $85,525$80,250 to $171,050$53,700 to $85,50024%$85,525 to $163,300$171,050 to $326,600$85,500 to $163,30032%$163,300 to $207,350$326,600 to $414,700$163,300 to $207,35035%$207,350 to $518,400$414,700 to $622,050$207,350 to $518,40037%more than $518,400more than $622,050more than $518,400Standard Deduction$12,400$24,800$18,650Taxpayers:Married Filing JointlyGross income:$128,000Deductions:$18,800$925$750$525Tax credit:$650Taxable income: $ Tax owed: $

Answer 1

Taxable income = $82,200

Tax owed = $17,434

Step-by-step explanation:

The taxable income is equal to the gross income less the deductions, so we can calculate the taxable income as:

$128,000 - $24,800 - $18,800 - $925 - $750 - $525 =$82,200

Then, If the taxpayer is married filing jointly, the tax rate is 22%, therefore the tax can be calculated as:

$82,200 x 22% = $18,084

Finally, we need to subtract the tax credit, so:

$18084 - $650 = $17434

Therefore, the answers are:

Taxable income = $82,200

Tax owed = $17,434