Problem 3-38 (LO 3-3) Determine the amount of tax liability in the following situations. In all cases, the taxpayer is using the
filing status of married filing jointly. Use the appropriate Tax Tables or Tax Rate Schedules. Taxable income of $62,449 that includes a qualified dividend of $560. Taxable income of $12,932 that includes a qualified dividend of $322. Taxable income of $144,290 that includes a qualified dividend of $4,384. (Round your intermediate computations to 2 decimal places and final answer to the nearest whole dollar amount.) Taxable income of $43,297 that includes a qualified dividend of $971. Taxable income of $262,403 that includes a qualified dividend of $12,396. (Round your intermediate computations to 2 decimal places and final answer to the nearest whole dollar amount.) (For all requirements, use the Tax Tables for taxpayers with taxable income under $100,000 and the Tax Rate Schedules for those with taxable income above $100,000.)
1 answer:
Answer:
The tax for all five cases is as calculated in the attached figure.
Explanation:
The calculation of tax for individual income is calculated as attached in the excel file screen shot. As year is not mentioned, the tax tables are used for 2015 (As observed by finding a reference question).
Net Taxable Income: |$62449
Dividend: |$ (560)
--------------------------------------------
Taxable Income |$ 61889
(excluding dividend) |
For income bracket | Tax Rate | Tax Amount
(0-18450) | 10% of Income | 18450*10%= $1845
(18451-74900) | 15% of Income | (61889-18450)*10%= $6525.85
Total Tax (Less Dividend) | $ 8360.85
Tax on Dividend is given as
0% for Income less than 74900. As income is less than the value so the dividend tax is 0.
Total Tax=Tax(less dividend)+Tax(dividend)
Total Tax=$ 8360.85
The other entries are calculated using the same in the excel and the screenshot is attached below.
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