Solved on Nov 18, 2023

Compute the tax owed by a married couple with $\$ 226,000$ taxable income and a $\$ 6,000$ tax credit, using the 2021 marginal tax rates.

STEP 1

Assumptions1. The couple is married and filing jointly. . The taxable income is \$226,000.
3. The tax credit is \$6,000.
4. The2021 marginal tax rates and tax brackets are as given in the table.
5. The tax owed is calculated by adding the tax calculated for each tax bracket that the taxable income falls into, then subtracting the tax credit.

STEP 2

First, we need to determine which tax brackets the taxable income falls into. From the table, we can see that for a married couple filing jointly, the taxable income of \$226,000 falls into the10\%,12\%,22\%,24\%, and35\% tax brackets.

STEP 3

Next, we calculate the tax for each tax bracket. The tax for each bracket is calculated by subtracting the lower limit of the bracket from the upper limit, multiplying the result by the tax rate, and then adding the result to the tax calculated for the previous brackets.
For the10\% bracket, the tax is $Tax_{10\%} = (19,900 -0) \times10\%$

STEP 4

Calculate the tax for the10\% bracket.
$Tax_{10\%} = (19,900 -0) \times10\% = \$1,990$

STEP 5

For the12\% bracket, the tax is $Tax_{12\%} = (81,050 -19,901) \times12\%$

STEP 6

Calculate the tax for the12\% bracket.
$Tax_{12\%} = (81,050 -19,901) \times12\% = \$,337.88$

STEP 7

For the22\% bracket, the tax is $Tax_{22\%} = (172,750 -81,051) \times22\%$

STEP 8

Calculate the tax for the22\% bracket.
$Tax_{22\%} = (172,750 -81,051) \times22\% = \$20,173.78$

STEP 9

For the24\% bracket, the tax is $Tax_{24\%} = (226,000 -172,751) \times24\%$

STEP 10

Calculate the tax for the24\% bracket.
$Tax_{24\%} = (226,000 -172,751) \times24\% = \$12,779.76$

STEP 11

Now that we have the tax for each bracket, we can add these together to get the total tax before the credit.
$Total\, tax = Tax_{10\%} + Tax_{\%} + Tax_{22\%} + Tax_{24\%}$

STEP 12

Calculate the total tax before the credit.
$Total\, tax = \$,990 + \$7,337.88 + \$20,173.78 + \$12,779.76 = \$42,281.42$

STEP 13

Now that we have the total tax before the credit, we can subtract the tax credit to get the final tax owed.
$Tax\, owed = Total\, tax - Tax\, credit$

STEP 14

Plug in the values for the total tax and the tax credit to calculate the tax owed.
$Tax\, owed = \$42,281.42 - \$6,000$

STEP 15

Calculate the tax owed.
$Tax\, owed = \$42,281.42 - \$,000 = \$36,281.42$ The couple owes \$36,281.42 in taxes.

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Compute the tax owed by a married couple with $\$ 226,000$ taxable income and a $\$ 6,000$ tax credit, using the 2021 marginal tax rates.

STEP 1

STEP 2

First, we need to determine which tax brackets the taxable income falls into. From the table, we can see that for a married couple filing jointly, the taxable income of \$226,000 falls into the10\%,12\%,22\%,24\%, and35\% tax brackets.

STEP 3

STEP 4

Calculate the tax for the10\% bracket.
$Tax_{10\%} = (19,900 -0) \times10\% = \$1,990$

STEP 5

For the12\% bracket, the tax is $Tax_{12\%} = (81,050 -19,901) \times12\%$

STEP 6

Calculate the tax for the12\% bracket.
$Tax_{12\%} = (81,050 -19,901) \times12\% = \$,337.88$

STEP 7

For the22\% bracket, the tax is $Tax_{22\%} = (172,750 -81,051) \times22\%$

STEP 8

Calculate the tax for the22\% bracket.
$Tax_{22\%} = (172,750 -81,051) \times22\% = \$20,173.78$

STEP 9

For the24\% bracket, the tax is $Tax_{24\%} = (226,000 -172,751) \times24\%$

STEP 10

Calculate the tax for the24\% bracket.
$Tax_{24\%} = (226,000 -172,751) \times24\% = \$12,779.76$

STEP 11

Now that we have the tax for each bracket, we can add these together to get the total tax before the credit.
$Total\, tax = Tax_{10\%} + Tax_{\%} + Tax_{22\%} + Tax_{24\%}$

STEP 12

Calculate the total tax before the credit.
$Total\, tax = \$,990 + \$7,337.88 + \$20,173.78 + \$12,779.76 = \$42,281.42$

STEP 13

Now that we have the total tax before the credit, we can subtract the tax credit to get the final tax owed.
$Tax\, owed = Total\, tax - Tax\, credit$

STEP 14

Plug in the values for the total tax and the tax credit to calculate the tax owed.
$Tax\, owed = \$42,281.42 - \$6,000$

STEP 15

Calculate the tax owed.
$Tax\, owed = \$42,281.42 - \$,000 = \$36,281.42$ The couple owes \$36,281.42 in taxes.

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Compute the tax owed by a married couple with $226,000\$ 226,000$226,000 taxable income and a $6,000\$ 6,000$6,000 tax credit, using the 2021 marginal tax rates.

STEP 1

STEP 2

First, we need to determine which tax brackets the taxable income falls into. From the table, we can see that for a married couple filing jointly, the taxable income of \$226,000 falls into the10\%,12\%,22\%,24\%, and35\% tax brackets.

STEP 3

STEP 4

Calculate the tax for the10\% bracket.Tax10%=(19,900−0)×10%=$1,990Tax_{10\%} = (19,900 -0) \times10\% = \$1,990Tax10%​=(19,900−0)×10%=$1,990

STEP 5

For the12\% bracket, the tax isTax12%=(81,050−19,901)×12%Tax_{12\%} = (81,050 -19,901) \times12\%Tax12%​=(81,050−19,901)×12%

STEP 6

Calculate the tax for the12\% bracket.Tax12%=(81,050−19,901)×12%=$,337.88Tax_{12\%} = (81,050 -19,901) \times12\% = \$,337.88Tax12%​=(81,050−19,901)×12%=$,337.88

STEP 7

For the22\% bracket, the tax isTax22%=(172,750−81,051)×22%Tax_{22\%} = (172,750 -81,051) \times22\%Tax22%​=(172,750−81,051)×22%

STEP 8

Calculate the tax for the22\% bracket.Tax22%=(172,750−81,051)×22%=$20,173.78Tax_{22\%} = (172,750 -81,051) \times22\% = \$20,173.78Tax22%​=(172,750−81,051)×22%=$20,173.78

STEP 9

For the24\% bracket, the tax isTax24%=(226,000−172,751)×24%Tax_{24\%} = (226,000 -172,751) \times24\%Tax24%​=(226,000−172,751)×24%

STEP 10

Calculate the tax for the24\% bracket.Tax24%=(226,000−172,751)×24%=$12,779.76Tax_{24\%} = (226,000 -172,751) \times24\% = \$12,779.76Tax24%​=(226,000−172,751)×24%=$12,779.76

STEP 11

Now that we have the tax for each bracket, we can add these together to get the total tax before the credit.Total tax=Tax10%+Tax%+Tax22%+Tax24%Total\, tax = Tax_{10\%} + Tax_{\%} + Tax_{22\%} + Tax_{24\%}Totaltax=Tax10%​+Tax%​+Tax22%​+Tax24%​

STEP 12

Calculate the total tax before the credit.Total tax=$,990+$7,337.88+$20,173.78+$12,779.76=$42,281.42Total\, tax = \$,990 + \$7,337.88 + \$20,173.78 + \$12,779.76 = \$42,281.42Totaltax=$,990+$7,337.88+$20,173.78+$12,779.76=$42,281.42

STEP 13

Now that we have the total tax before the credit, we can subtract the tax credit to get the final tax owed.Tax owed=Total tax−Tax creditTax\, owed = Total\, tax - Tax\, creditTaxowed=Totaltax−Taxcredit

STEP 14

Plug in the values for the total tax and the tax credit to calculate the tax owed.Tax owed=$42,281.42−$6,000Tax\, owed = \$42,281.42 - \$6,000Taxowed=$42,281.42−$6,000

STEP 15

Calculate the tax owed.Tax owed=$42,281.42−$,000=$36,281.42Tax\, owed = \$42,281.42 - \$,000 = \$36,281.42Taxowed=$42,281.42−$,000=$36,281.42The couple owes \$36,281.42 in taxes.

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Compute the tax owed by a married couple with $\$ 226,000$ taxable income and a $\$ 6,000$ tax credit, using the 2021 marginal tax rates.

Calculate the tax for the10\% bracket.
$Tax_{10\%} = (19,900 -0) \times10\% = \$1,990$

For the12\% bracket, the tax is $Tax_{12\%} = (81,050 -19,901) \times12\%$

Calculate the tax for the12\% bracket.
$Tax_{12\%} = (81,050 -19,901) \times12\% = \$,337.88$

For the22\% bracket, the tax is $Tax_{22\%} = (172,750 -81,051) \times22\%$

Calculate the tax for the22\% bracket.
$Tax_{22\%} = (172,750 -81,051) \times22\% = \$20,173.78$

For the24\% bracket, the tax is $Tax_{24\%} = (226,000 -172,751) \times24\%$

Calculate the tax for the24\% bracket.
$Tax_{24\%} = (226,000 -172,751) \times24\% = \$12,779.76$

Now that we have the tax for each bracket, we can add these together to get the total tax before the credit.
$Total\, tax = Tax_{10\%} + Tax_{\%} + Tax_{22\%} + Tax_{24\%}$

Calculate the total tax before the credit.
$Total\, tax = \$,990 + \$7,337.88 + \$20,173.78 + \$12,779.76 = \$42,281.42$

Now that we have the total tax before the credit, we can subtract the tax credit to get the final tax owed.
$Tax\, owed = Total\, tax - Tax\, credit$

Plug in the values for the total tax and the tax credit to calculate the tax owed.
$Tax\, owed = \$42,281.42 - \$6,000$

Calculate the tax owed.
$Tax\, owed = \$42,281.42 - \$,000 = \$36,281.42$ The couple owes \$36,281.42 in taxes.