If a person lives in Texas, and has an income less than $40,000, then they pay...
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If a person lives in Texas, and has an income less than $40,000, then they pay no taxes, but if their income is at least $40,000, they pay tax of 15% on income above $40,000. However, if they do not live in Texas, a person filing as single individual pays a flat rate of 32% of income above $42,200. If filing as married couple, they pay flat tax of 28% of income above $75,000. Person Ms Marple Poirot Sherlock Tuppence LOGIC HINT: State Total Income Filing Status CA $ 75,000.00 Single TX $ 80,000.00 Single TX $ 35,000.00 Single, NY $ 110,000.00 Married It would be best to start by checking first if a person lives in Texas or not, since rest of the possible decisions flow from that in this problem. Tax Paid If a person lives in Texas, and has an income less than $40,000, then they pay no taxes, but if their income is at least $40,000, they pay tax of 15% on income above $40,000. However, if they do not live in Texas, a person filing as single individual pays a flat rate of 32% of income above $42,200. If filing as married couple, they pay flat tax of 28% of income above $75,000. Person Ms Marple Poirot Sherlock Tuppence LOGIC HINT: State Total Income Filing Status CA $ 75,000.00 Single TX $ 80,000.00 Single TX $ 35,000.00 Single, NY $ 110,000.00 Married It would be best to start by checking first if a person lives in Texas or not, since rest of the possible decisions flow from that in this problem. Tax Paid
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To calculate the tax paid by each person based on their income and filing status we need to follow t... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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