Joe's Taxable Income Is $\$ 67,825$. Use This Tax Schedule To Calculate The Total Amount He Owes In Taxes. \[ \begin{tabular}{|c|c|c|} \hline If Taxable Income Is Over- & But Not Over- & The Tax Is: \\ \hline \$ 0 & \$
Understanding the Tax Schedule
The tax schedule provided outlines the tax rates and corresponding taxable income ranges. To calculate Joe's tax liability, we need to follow the schedule and apply the tax rates to his taxable income.
Joe's Taxable Income
Joe's taxable income is $67,825.
Step 1: Determine the Taxable Income Range
Using the tax schedule, we need to determine which taxable income range Joe falls into. The schedule states that if the taxable income is over $0 but not over $9,875, the tax is 10% of the first $9,875.
Step 2: Calculate the Tax for the First $9,875
Since Joe's taxable income is $67,825, which is over $9,875, we need to calculate the tax for the first $9,875. The tax rate is 10%, so we multiply $9,875 by 0.10.
$9,875 \times 0.10 = $987.50
Step 3: Determine the Taxable Income Range for the Remaining Amount
The remaining amount is $67,825 - $9,875 = $57,950. We need to determine which taxable income range this amount falls into. The schedule states that if the taxable income is over $9,875 but not over $40,125, the tax is 12% of the amount over $9,875.
Step 4: Calculate the Tax for the Remaining Amount
Since the remaining amount of $57,950 falls into the taxable income range of $9,875 to $40,125, we need to calculate the tax for this amount. The tax rate is 12%, so we multiply $57,950 by 0.12.
$57,950 \times 0.12 = $6,954
Step 5: Calculate the Total Tax Liability
To calculate the total tax liability, we add the tax for the first $9,875 and the tax for the remaining amount.
$987.50 + $6,954 = $7,941.50
Conclusion
Using the tax schedule, we calculated Joe's total tax liability as $7,941.50.
Tax Schedule
| If taxable income is over- | But not over- | The tax is: |
|---|---|---|
| $0 | $9,875 | 10% of the first $9,875 |
| $9,875 | $40,125 | 12% of the amount over $9,875 |
| $40,125 | $80,250 | 22% of the amount over $40,125 |
| $80,250 | $164,700 | 24% of the amount over $80,250 |
| $164,700 | $214,700 | 32% of the amount over $164,700 |
| $214,700 | $518,400 | 35% of the amount over $214,700 |
| $518,400 | 37% of the amount over $518,400 |
Tax Rates
| Taxable Income Range | Tax Rate |
|---|---|
| $0 - $9,875 | 10% |
| $9,875 - $40,125 | 12% |
| $40,125 - $80,250 | 22% |
| $80,250 - $164,700 | 24% |
| $164,700 - $214,700 | 32% |
| $214,700 - $518,400 | 35% |
| $518,400 - | 37% |
Tax Calculation
| Taxable Income Range | Tax Rate | Taxable Income | Tax | |
|---|---|---|---|---|
| $0 - $9,875 | 10% | $9,875 | $987.50 | |
| $9,875 - $40,125 | 12% | $57,950 | $6,954 | |
| Total Tax Liability | $7,941.50 |
Q: What is Joe's taxable income?
A: Joe's taxable income is $67,825.
Q: How is Joe's tax liability calculated?
A: Joe's tax liability is calculated using the tax schedule provided. The schedule outlines the tax rates and corresponding taxable income ranges. We need to follow the schedule and apply the tax rates to Joe's taxable income.
Q: What is the tax rate for the first $9,875 of taxable income?
A: The tax rate for the first $9,875 of taxable income is 10%.
Q: How much tax is owed on the first $9,875 of taxable income?
A: The tax owed on the first $9,875 of taxable income is $987.50.
Q: What is the tax rate for the remaining amount of taxable income?
A: The tax rate for the remaining amount of taxable income is 12%.
Q: How much tax is owed on the remaining amount of taxable income?
A: The tax owed on the remaining amount of taxable income is $6,954.
Q: What is Joe's total tax liability?
A: Joe's total tax liability is $7,941.50.
Q: Can you explain the tax schedule in more detail?
A: The tax schedule outlines the tax rates and corresponding taxable income ranges. The schedule is as follows:
| If taxable income is over- | But not over- | The tax is: |
|---|---|---|
| $0 | $9,875 | 10% of the first $9,875 |
| $9,875 | $40,125 | 12% of the amount over $9,875 |
| $40,125 | $80,250 | 22% of the amount over $40,125 |
| $80,250 | $164,700 | 24% of the amount over $80,250 |
| $164,700 | $214,700 | 32% of the amount over $164,700 |
| $214,700 | $518,400 | 35% of the amount over $214,700 |
| $518,400 | 37% of the amount over $518,400 |
Q: What are the tax rates for each taxable income range?
A: The tax rates for each taxable income range are as follows:
| Taxable Income Range | Tax Rate |
|---|---|
| $0 - $9,875 | 10% |
| $9,875 - $40,125 | 12% |
| $40,125 - $80,250 | 22% |
| $80,250 - $164,700 | 24% |
| $164,700 - $214,700 | 32% |
| $214,700 - $518,400 | 35% |
| $518,400 - | 37% |
Q: Can you provide a step-by-step calculation of Joe's tax liability?
A: Yes, the step-by-step calculation of Joe's tax liability is as follows:
- Determine the tax rate for the first $9,875 of taxable income: 10%
- Calculate the tax owed on the first $9,875 of taxable income: $987.50
- Determine the tax rate for the remaining amount of taxable income: 12%
- Calculate the tax owed on the remaining amount of taxable income: $6,954
- Add the tax owed on the first $9,875 of taxable income and the tax owed on the remaining amount of taxable income: $7,941.50
Tax Calculation
| Taxable Income Range | Tax Rate | Taxable Income | Tax |
|---|---|---|---|
| $0 - $9,875 | 10% | $9,875 | $987.50 |
| $9,875 - $40,125 | 12% | $57,950 | $6,954 |
| Total Tax Liability | $7,941.50 |