Workers in the U.S. pay several types of taxes on income. The lesson discussed the FICA...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Workers in the U.S. pay several types of taxes on income. The lesson discussed the FICA taxes. You also have to pay federal income tax. Your federal income tax rate is based on the amount of money you make. Income is broken into levels called tax brackets. The table below shows the tax brackets for 2011. Taxable Income $0 - $8,500 $8,500 $34,500 $34,500 - $83,600 $83,600 $174,400 Tax 10% of taxable income $850 plus 15% of excess over $8,500 $4,750 plus 25% of excess over $34,500 $17,025 plus 28% of excess over $83,600 $174,400 - $379,150 $42,449 plus 33% of excess over $174,400 $379,150 plus $110,016.50 plus 35% of excess over $379,150 a. What tax rate does everyone pay on the first $8,500 of income? b. Calculate the income tax for a person earning $21,500. c. Calculate the income tax for a person earning $55,000. d. Refer to your answer for part (c). The total tax in part (c) is what percentage of the person's income? Round to the nearest tenth of a percent. Workers in the U.S. pay several types of taxes on income. The lesson discussed the FICA taxes. You also have to pay federal income tax. Your federal income tax rate is based on the amount of money you make. Income is broken into levels called tax brackets. The table below shows the tax brackets for 2011. Taxable Income $0 - $8,500 $8,500 $34,500 $34,500 - $83,600 $83,600 $174,400 Tax 10% of taxable income $850 plus 15% of excess over $8,500 $4,750 plus 25% of excess over $34,500 $17,025 plus 28% of excess over $83,600 $174,400 - $379,150 $42,449 plus 33% of excess over $174,400 $379,150 plus $110,016.50 plus 35% of excess over $379,150 a. What tax rate does everyone pay on the first $8,500 of income? b. Calculate the income tax for a person earning $21,500. c. Calculate the income tax for a person earning $55,000. d. Refer to your answer for part (c). The total tax in part (c) is what percentage of the person's income? Round to the nearest tenth of a percent.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
What are some techniques of good writers? Which ones do you use regularly?
-
Consider the following statement: The federal government of Canada should not intervene when foreign companies attempt to buy out Canadian companies. This type of action by government interferes with...
-
The country's inflation rate is expected to reach an all-time high of 8% this year. What monetary policy should the Bangko Sentral ng Pilipinas implement to mitigate the situation? Concretize your...
-
What are the two functions of turnbuckles on an aircraft control system?
-
Wiring used by the Aircraft Division of Retina Manufacturing is currently purchased from outside suppliers at a cost of $75 per unit. However, the same materials are available from the Electronic...
-
Consider a fishing community with a large number of individually-operated fishing boats. All of the boats are the same and catch the same type and quality of fish. The boats are simple and are not...
-
Mr. Binit, Finance manager of S Ltd. is evaluating the present credit policy of his company. Under the present policy, the company is offering 3% discount for payment within 10 days. The analysis of...
-
Two sound sources operating together produce 81 dB at a particular point. One source is switched off and the sound level falls to 80 dB. What would be the sound level if the other source was switched...
-
In-class Assignment - Danica and Ben Skanes Case Study: Three years ago, Danica and Ben Skanes got married and purchased their first home together. This purchase occurred with very little thought or...
-
At first glance, is the Strategy Change Cycle an approach that you would likely suggest if tasked with formatting a strategic plan process? If so, what aspects make it appealing? If not, what are...
-
From the following test results, determine the voltage regulation of a 2000-V 1-phase alternator delivering a current of 100 A at (i) unity p.f. (ii) 0.8 leading p.f. and (iii) 0.71 lagging p.f. Test...
-
Death Valley Bicycle Company manufactures mountain bikes. The following data for October of the current year are available: Quantity of direct labor used 440 hrs. Actual rate for direct labor...
-
How can employees benefit from alternative work arrangements? Why?
-
From the choice of simple moving average, exponential smoothing, and linear regression analysis, which forecasting technique would you consider the most accurate? Why? please write it in word...
-
Which of the following is not a general common- ality among professions' codes of conduct? a. Members of each profession are usually ex- pected to maintain a higher standard of con- duct than is...
-
All of the following are part of the structure of the Code of Professional Conduct except a. Principles of Professional Conduct. b. Concepts. c. Rules of Professional Conduct. d. Interpretations of...
-
The principles of the AICPA's Code of Professional Conduct emphasize certain responsibilities. Which of the following is an incomplete statement of those responsibilities? a. CPAs must serve their...
Study smarter with the SolutionInn App