Question: PLEASE HELP WILL GIVE THUMBS UP Henrich is a single taxpayer. In 2023, his taxable income is $534,500. What are his income tax and net
PLEASE HELP WILL GIVE THUMBS UP
Henrich is a single taxpayer. In 2023, his taxable income is $534,500. What are his income tax and net investment income tax liability in each of the following alternative scenarios?
a. His $534,500 of taxable income includes $48,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $570,000.
b. Henrich has $197,250 of taxable income, which includes $50,900 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $214,500.
Tax Rates for Net Capital Gains and Qualified Dividends
| Rate* | Taxable Income | ||||
|---|---|---|---|---|---|
| Married Filing Jointly | Married Filing Separately | Single | Head of Household | Trusts and Estates | |
| 0% | $0 - $89,250 | $0 - $44,625 | $0 - $44,625 | $0 - $59,750 | $0 - $3,000 |
| 15% | $89,251 - $553,850 | $44,626 - $276,900 | $44,626 - $492,300 | $59,751 - $523,050 | $3,001 - $14,650 |
| 20% | $553,851+ | $276,901+ | $492,301+ | $523,051+ | $523,051+ |
IndividualsSchedule X-Single
| If taxable income is over: | But not over: | The tax is: |
|---|---|---|
| $ 0 | $ 11,000 | 10% of taxable income |
| $ 11,000 | $ 44,725 | $1,100 plus 12% of the excess over $11,000 |
| $ 44,725 | $ 95,375 | $5,147 plus 22% of the excess over $44,725 |
| $ 95,375 | $ 182,100 | $16,290 plus 24% of the excess over $95,375 |
| $ 182,100 | $ 231,250 | $37,104 plus 32% of the excess over $182,100 |
| $ 231,250 | $ 578,125 | $52,832 plus 35% of the excess over $231,250 |
| $ 578,125 | $174,238.25 plus 37% of the excess over $578,125 |
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