Use the following information and tax table below to complete parts a-d. Assume you are offered...
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Use the following information and tax table below to complete parts a-d. Assume you are offered a job with a salary of $47,000 and a bonus of 8% based on your performance during the year. The bonus is taxable income. You will contribute 3% of your salary and bonus to your 401k which results in lower taxable income. a. If you receive your full bonus at the end of the year, what is your total (gross or before tax) pay for the year? b. What is your marginal tax rate? c. Look up the standard deduction for a single taxpayer for 2022. Use this, your salary and bonus information, 401k deduction, and the tax table to determine your tax liability. d. Calculate your effective (average) tax rate? e. Calculate your take-home pay using the gross pay in part a. and the taxes calculated in part c. (ignore employment taxes). SINGLE Persons If the Adjusted Wage Amount (line 1d) is at least... A $0 $5,250 $16,250 $49,975 $100,625 $187,350 $236,500 $583,375 But less than... B $5,250 $16,250 $49,975 $100,625 $187,350 $236,500 $583,375 The tentative amount to withhold is... с $0.00 $0.00 $1,100.00 $5,147.00 $16,290.00 $37,104.00 $52,832.00 $174,238.25 Plus this percentage... D 0% 10% 12% 22% 24% 32% 35% 37% of the amount that the wage exceeds... E $0 $5,250 $16,250 $49,975 $100,625 $187,350 $236,500 $583,375 Use the following information and tax table below to complete parts a-d. Assume you are offered a job with a salary of $47,000 and a bonus of 8% based on your performance during the year. The bonus is taxable income. You will contribute 3% of your salary and bonus to your 401k which results in lower taxable income. a. If you receive your full bonus at the end of the year, what is your total (gross or before tax) pay for the year? b. What is your marginal tax rate? c. Look up the standard deduction for a single taxpayer for 2022. Use this, your salary and bonus information, 401k deduction, and the tax table to determine your tax liability. d. Calculate your effective (average) tax rate? e. Calculate your take-home pay using the gross pay in part a. and the taxes calculated in part c. (ignore employment taxes). SINGLE Persons If the Adjusted Wage Amount (line 1d) is at least... A $0 $5,250 $16,250 $49,975 $100,625 $187,350 $236,500 $583,375 But less than... B $5,250 $16,250 $49,975 $100,625 $187,350 $236,500 $583,375 The tentative amount to withhold is... с $0.00 $0.00 $1,100.00 $5,147.00 $16,290.00 $37,104.00 $52,832.00 $174,238.25 Plus this percentage... D 0% 10% 12% 22% 24% 32% 35% 37% of the amount that the wage exceeds... E $0 $5,250 $16,250 $49,975 $100,625 $187,350 $236,500 $583,375
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To address the questions posed lets work through them one by one a If you receive your full bonus at the end of the year what is your total gross or b... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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