2017 Individual Tax Rates Single Individuals 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 $9,325 $0 10.0% 10.0% $9,325 - $37,950 932.50 15.0 13.8 $37,950 - $91,900 5,226.25 25.0 20.4 $91,900 - $191,650 18,713.75 28.0 24.3 $191,650 - $416,700 46,643.75 33.0 29.0 $416,700 - $418,400 120,910.25 35.0 29.0 Over $418,400 121,505.25 39.6 39.6 Standard deduction for individual: $6,350 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 $18,650 $0 10.0% 10.0% $18,650 - $75,900 1,865.00 15.0 13.8 $75,900 - $153,100 10,452.50 25.0 19.4 $153,100 - $233,350 29,752.50 28.0 22.4 $233,350 - $416,700 52,222.50 33.0 27.1 $416,700 - $470,700 112,728.00 35.0 28.0 Over $470,700 131,628.00 39.6 39.6 Standard deduction for married couples filing jointly: $12,700 Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2017, she earned wages of $107,000. She doesn't itemize deductions, so she will take the standard deduction and her personal exemption to calculate 2017 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $4,400. How much does Jenna owe to the IRS for taxes? Round your intermediated and final answers to the nearest cent. $

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter3: Preparing Your Taxes

Section: Chapter Questions

Problem 1FPE: Calculating marginal tax rates. Piper Wells is single and received the items and amounts of income...

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2017 Individual Tax Rates
Single Individuals
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 $9,325	$0	10.0%	10.0%
$9,325 - $37,950	932.50	15.0	13.8
$37,950 - $91,900	5,226.25	25.0	20.4
$91,900 - $191,650	18,713.75	28.0	24.3
$191,650 - $416,700	46,643.75	33.0	29.0
$416,700 - $418,400	120,910.25	35.0	29.0
Over $418,400	121,505.25	39.6	39.6

Standard deduction for individual: $6,350

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 $18,650	$0	10.0%	10.0%
$18,650 - $75,900	1,865.00	15.0	13.8
$75,900 - $153,100	10,452.50	25.0	19.4
$153,100 - $233,350	29,752.50	28.0	22.4
$233,350 - $416,700	52,222.50	33.0	27.1
$416,700 - $470,700	112,728.00	35.0	28.0
Over $470,700	131,628.00	39.6	39.6

Standard deduction for married couples filing jointly: $12,700

Quantitative Problem: Jenna is a single taxpayer with no dependents so she qualifies for one personal exemption. During 2017, she earned wages of $107,000. She doesn't itemize deductions, so she will take the standard deduction and her personal exemption to calculate 2017 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $4,400. How much does Jenna owe to the IRS for taxes? Round your intermediated and final answers to the nearest cent.
$

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