Assuming your taxable income for the year is $1,000,000 from wages prior to considering interest and dividend

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Assuming your taxable income for the year is $1,000,000 from wages prior to considering interest and dividend income (ordinary income marginal tax rate is 37%). You also receive an additional $12,000 of Interest and $8,000 of dividend income.

What is your tax on this $20,000?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Jul 17, 2023 03:00 AM

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Assuming your taxable income for the year is $1,000,000 from wages prior to considering interest and dividend

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Expert Answer:

To calculate the tax on the 20000 income we need to consider the different tax rates for ordinary in... View the full answer

Income Tax Fundamentals 2013

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