2. Now let's do this again, but with a starting income of $65,000, still considering a 3% raise. 1040 Line(s) Description Before Raise After Raise 1 and 8b Wages, salaries, and tips. Adjusted gross income (AGI) $65,000 11a Standard deduction and exemption (single, nondependent) $12,200 $12,200 11b Subtract line 5 from line 4. Taxable income 16 Total Tax (from table) Net Income (after Fed. Inc. Tax) Effective tax rate (tax as a percentage of all income) Additional (marginal) income Additional (marginal) tax Marginal tax rate (tax rate on additional income)

Where exactly do these values in the Tax Table come from? This entire tax table can be described more concisely by something called a Tax Schedule. A tax schedule is a table of instructions for how to calculate taxes based on the taxable income value. Using these instructions, we can see how the values in the table were determined. Below is a copy of the 2019 Tax Schedule. We will use this tax schedule during our In Class Activity to "investigate" further what is happening mathematically with taxes. 2019 Tax Schedule Single Taxable Income Tax Brackets and Rates, 2019 If taxable income is over but not over the tax is: $0 $9,700 $39,475 $84,200 $160,725 $204,100 $510,300 $9,700 $39,475 $84,200 $160,725 $204,100 $510,300 no limit 10% of the amount over $0 $970 plus 12% of the amount over $9,700 $4,543 plus 22% of the amount over $39,475 $14,382 plus 24% of the amount over $84,200 $32,748 plus 32% of the amount over $160,725 $46,628 plus 35% of the amount over $204,100 $153,798 plus 37% of the amount over $510,300