If Your Taxable Income Is

Up to $$8,925$

$$8,925-$$$36\mathrm{.}250$

$$36,250-$$$87\mathrm{.}850$

$2013$ Individual Tax Rates

Single Individuals

You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base $($Marginal Rate$)$

Average Tax Rate at Top of Bracket

$$0$

$892\mathrm{.}50$

$\mathrm{}$

 

$10\mathrm{.}0\%$

$10\mathrm{.}0\%$

$15\mathrm{.}0$

$13\mathrm{.}8$

$4,991\mathrm{.}25$

$25\mathrm{.}0$

$20\mathrm{.}4$

$$87\mathrm{.}850-$$$183,250$

$17,891\mathrm{.}25$

$28\mathrm{.}0$

$24\mathrm{.}3$

$$183,250-$$$398,350$

$44,603\mathrm{.}25$

$33\mathrm{.}0$

$29\mathrm{.}0$

$$398,350-$$$400,000$

$115,586\mathrm{.}25$

$35\mathrm{.}0$

$29\mathrm{.}0$

Over $$400,000$

$116,163\mathrm{.}75$

$39\mathrm{.}6$

$39\mathrm{.}6$

Standard deduction for individual: $$6,100$

Married Couples Filing Joint Returns

If Your Taxable Income Is

You Pay This Amount on the Base of the Bracket

Plus This Percentage on the Excess over the Base $($Marginal Rate$)$

Average Tax Rate at Top of Bracket

Up to $$17,850$

$$17\mathrm{.}850-$$$72\mathrm{.}500$

$50$

$10\mathrm{.}0\%$

$10\mathrm{.}0\%$

$1,785\mathrm{.}00$

$15\mathrm{.}0$

$13\mathrm{.}8$

$$72\mathrm{.}500-$$$146,400$

$9,982\mathrm{.}50$

$25\mathrm{.}0$

$19\mathrm{.}4$

$$146,400-$$$223,050$

$28\mathrm{.}457\mathrm{.}50$

$28\mathrm{.}0$

$22\mathrm{.}4$

$$223,050-$$$398,350$

$49,919\mathrm{.}50$

$33\mathrm{.}0$

$27\mathrm{.}1$

$$398,350-$$$450\mathrm{.}000$

$107,768\mathrm{.}50$

$35\mathrm{.}0$

$28\mathrm{.}0$

Over $$450,000$

$125,846\mathrm{.}00$

$39\mathrm{.}6$

$39\mathrm{.}6$

Standard deduction for married couples filing jointly: $$12\mathrm{.}200$

Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During $2013,$ she earned wages of $$104,000.$ She doesn't itemize deductions, so she will take the standard deduction and her personal exemption to calculate $2013$ taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $$6,000.$ How much does Jenna owe to the IRS for taxes? Round your intermediated and final answers to the nearest cent.

Answer rating: 100% (QA)

To calculate Jennas tax liability for the year 2013 we need to consider her taxable income which is calculated by subtracting the standard deduction a... View the full answer