Mike Brady’s spouse died five years ago. Mike is 40 years old, and he has three boys, Greg, Peter, and Bobby. The three boys (his sons) live with Mike for more than half of the year. Greg is 15, Peter is 12, and Bobby is 8. The boys do not provide over half of their own support.

1. What filing status should Mike use?
2. How many dependents will he claim on his tax return? List his qualifying dependents. Are they Qualifying Children or Qualifying Relatives?
3. How much is Mike’s standard deduction (assume he cannot itemize, and his deduction is not phased out)?
4. If Mike’s adjusted gross income (AGI) is $170,000, what is his tax before any credits?
5. What is Mike’s marginal tax rate? Effective tax rate? Average tax rate? 

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Schedule X-Single If taxable income is over:But not over: The tax is: $ 9,950 S 40,525 S 86,375 S 164,925 |$14,751 plus 24% of the excess over $86,375 S 209,425 S33,603 plus 32% of the excess over $164,925 S 523,600 S47,843 plus 35% of the excess over $209,425 10% of taxable income $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 523,600 $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 S157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: 10% of taxable income $ 19,900 $ 81,050 $ 172,750 $ 329,850 $ 418,850 $ 628,300 $ 19,900 Š 81,050 |S1,990 plus 12% of the excess over $19,900 $ 172,750 | S9,328 plus 22% of the excess over $81,050 S 329,850 S29,502 plus 24% of the excess over $172,750 S 418,850 |S67,206 plus 32% of the excess over $329,850 S 628,300 S95,686 plus 35% of the excess over $418,850 S168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over:But not over: S 14,200 $ 54,200 S 86,350 The tax is: $ 14,200 $ 54,200 $ 86,350 $ 164,900 $ 209,400 $ 523,600 10% of taxable income $1.420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 S 164,900 S13,293 plus 24% of the excess over $86,350 S 209,400 | S32,145 plus 32% of the excess over $164,900 $ 523,600 S46,385 plus 35% of the excess over $209,400 S156,355 plus 37% of the excess over $523,600 Schedule X-Single If taxable income is over:But not over: The tax is: $ 9,950 S 40,525 S 86,375 S 164,925 |$14,751 plus 24% of the excess over $86,375 S 209,425 S33,603 plus 32% of the excess over $164,925 S 523,600 S47,843 plus 35% of the excess over $209,425 10% of taxable income $ 9,950 $ 40,525 $ 86,375 $ 164,925 $ 209,425 $ 523,600 $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 S157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: 10% of taxable income $ 19,900 $ 81,050 $ 172,750 $ 329,850 $ 418,850 $ 628,300 $ 19,900 Š 81,050 |S1,990 plus 12% of the excess over $19,900 $ 172,750 | S9,328 plus 22% of the excess over $81,050 S 329,850 S29,502 plus 24% of the excess over $172,750 S 418,850 |S67,206 plus 32% of the excess over $329,850 S 628,300 S95,686 plus 35% of the excess over $418,850 S168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over:But not over: S 14,200 $ 54,200 S 86,350 The tax is: $ 14,200 $ 54,200 $ 86,350 $ 164,900 $ 209,400 $ 523,600 10% of taxable income $1.420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 S 164,900 S13,293 plus 24% of the excess over $86,350 S 209,400 | S32,145 plus 32% of the excess over $164,900 $ 523,600 S46,385 plus 35% of the excess over $209,400 S156,355 plus 37% of the excess over $523,600

Answer rating: 100% (QA)

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