Select The Correct Answer.Based On The Following Tax Table, How Is The Tax Payable On A Taxable Income Of $$ 64,000$$ Calculated?[\begin{array}{|c|c|}\hline\text{Taxable Income} & \text{Tax Rate} \\hline$ 0 \text{ To } $
When it comes to calculating tax payable on a taxable income, it's essential to understand the tax table and how it applies to different income ranges. In this article, we'll walk you through the process of calculating tax payable on a taxable income of $64,000 using the provided tax table.
Tax Table Overview
The tax table provided is a standard table used by tax authorities to calculate tax payable on taxable income. The table consists of different income ranges, each with a corresponding tax rate. The tax rate increases as the taxable income increases, with the highest tax rate applying to the highest income range.
Calculating Tax Payable
To calculate tax payable on a taxable income of $64,000, we need to follow these steps:
- Determine the applicable tax rate: We need to identify the tax rate that applies to the taxable income of $64,000. To do this, we'll look at the tax table and find the income range that includes $64,000.
- Calculate the tax payable: Once we've identified the applicable tax rate, we'll calculate the tax payable by multiplying the taxable income by the tax rate.
Step 1: Determine the Applicable Tax Rate
Let's take a closer look at the tax table:
| Taxable Income | Tax Rate |
|---|---|
| $0 to $18,201 | 19% |
| $18,201 to $37,000 | 32.5% |
| $37,000 to $90,000 | 37% |
| $90,000 to $180,000 | 45% |
| $180,000 and above | 47% |
Since the taxable income of $64,000 falls within the income range of $37,000 to $90,000, the applicable tax rate is 37%.
Step 2: Calculate the Tax Payable
Now that we've identified the applicable tax rate, we can calculate the tax payable by multiplying the taxable income by the tax rate:
Tax payable = Taxable income x Tax rate = $64,000 x 37% = $64,000 x 0.37 = $23,520
Conclusion
In conclusion, the tax payable on a taxable income of $64,000 is calculated by determining the applicable tax rate and multiplying the taxable income by the tax rate. In this case, the applicable tax rate is 37%, and the tax payable is $23,520.
Tax Payable Calculation Example
To illustrate the tax payable calculation, let's consider an example:
Suppose we have a taxable income of $64,000, and we want to calculate the tax payable using the tax table.
| Taxable Income | Tax Rate |
|---|---|
| $0 to $18,201 | 19% |
| $18,201 to $37,000 | 32.5% |
| $37,000 to $90,000 | 37% |
| $90,000 to $180,000 | 45% |
| $180,000 and above | 47% |
Since the taxable income of $64,000 falls within the income range of $37,000 to $90,000, the applicable tax rate is 37%.
To calculate the tax payable, we multiply the taxable income by the tax rate:
Tax payable = Taxable income x Tax rate = $64,000 x 37% = $64,000 x 0.37 = $23,520
Tax Payable Calculation Formula
The tax payable calculation formula is:
Tax payable = Taxable income x Tax rate
Where:
- Taxable income is the amount of income subject to tax
- Tax rate is the percentage of tax payable on the taxable income
Tax Payable Calculation Example with Different Tax Rates
To illustrate the tax payable calculation with different tax rates, let's consider an example:
Suppose we have a taxable income of $64,000, and we want to calculate the tax payable using different tax rates.
| Taxable Income | Tax Rate |
|---|---|
| $0 to $18,201 | 19% |
| $18,201 to $37,000 | 32.5% |
| $37,000 to $90,000 | 37% |
| $90,000 to $180,000 | 45% |
| $180,000 and above | 47% |
Since the taxable income of $64,000 falls within the income range of $37,000 to $90,000, the applicable tax rate is 37%.
To calculate the tax payable, we multiply the taxable income by the tax rate:
Tax payable = Taxable income x Tax rate = $64,000 x 37% = $64,000 x 0.37 = $23,520
However, if the taxable income were $64,000 and the applicable tax rate were 32.5%, the tax payable would be:
Tax payable = Taxable income x Tax rate = $64,000 x 32.5% = $64,000 x 0.325 = $20,800
Tax Payable Calculation Example with Different Taxable Income
To illustrate the tax payable calculation with different taxable income, let's consider an example:
Suppose we have a taxable income of $64,000, and we want to calculate the tax payable using the tax table.
| Taxable Income | Tax Rate |
|---|---|
| $0 to $18,201 | 19% |
| $18,201 to $37,000 | 32.5% |
| $37,000 to $90,000 | 37% |
| $90,000 to $180,000 | 45% |
| $180,000 and above | 47% |
Since the taxable income of $64,000 falls within the income range of $37,000 to $90,000, the applicable tax rate is 37%.
To calculate the tax payable, we multiply the taxable income by the tax rate:
Tax payable = Taxable income x Tax rate = $64,000 x 37% = $64,000 x 0.37 = $23,520
However, if the taxable income were $64,000 and the applicable tax rate were 32.5%, the tax payable would be:
Tax payable = Taxable income x Tax rate = $64,000 x 32.5% = $64,000 x 0.325 = $20,800
Conclusion
In conclusion, the tax payable on a taxable income of $64,000 is calculated by determining the applicable tax rate and multiplying the taxable income by the tax rate. In this case, the applicable tax rate is 37%, and the tax payable is $23,520.
Tax Payable Calculation Formula with Different Tax Rates
The tax payable calculation formula with different tax rates is:
Tax payable = Taxable income x Tax rate
Where:
- Taxable income is the amount of income subject to tax
- Tax rate is the percentage of tax payable on the taxable income
Tax Payable Calculation Example with Different Taxable Income
To illustrate the tax payable calculation with different taxable income, let's consider an example:
Suppose we have a taxable income of $64,000, and we want to calculate the tax payable using the tax table.
| Taxable Income | Tax Rate |
|---|---|
| $0 to $18,201 | 19% |
| $18,201 to $37,000 | 32.5% |
| $37,000 to $90,000 | 37% |
| $90,000 to $180,000 | 45% |
| $180,000 and above | 47% |
Since the taxable income of $64,000 falls within the income range of $37,000 to $90,000, the applicable tax rate is 37%.
To calculate the tax payable, we multiply the taxable income by the tax rate:
Tax payable = Taxable income x Tax rate = $64,000 x 37% = $64,000 x 0.37 = $23,520
However, if the taxable income were $64,000 and the applicable tax rate were 32.5%, the tax payable would be:
Tax payable = Taxable income x Tax rate = $64,000 x 32.5% = $64,000 x 0.325 = $20,800
Tax Payable Calculation Formula with Different Taxable Income
The tax payable calculation formula with different taxable income is:
Tax payable = Taxable income x Tax rate
Where:
- Taxable income is the amount of income subject to tax
- Tax rate is the percentage of tax payable on the taxable income
Tax Payable Calculation Example with Different Tax Rates and Taxable Income
To illustrate the tax payable calculation with different tax rates and taxable income, let's consider an example:
Suppose we have a taxable income of $64,000, and we want to calculate the tax payable using the tax table.
| Taxable Income | Tax Rate |
|---|---|
| $0 to $18,201 | 19% |
| $18,201 to $37,000 | 32.5% |
| $37,000 to $90,000 | 37% |
| $90,000 to $180,000 | 45% |
| $180,000 and above | 47% |
In this article, we'll answer some frequently asked questions about tax payable calculation.
Q: What is tax payable?
A: Tax payable is the amount of tax that an individual or business owes to the government on their taxable income.
Q: How is tax payable calculated?
A: Tax payable is calculated by determining the applicable tax rate and multiplying the taxable income by the tax rate.
Q: What is the formula for tax payable calculation?
A: The formula for tax payable calculation is:
Tax payable = Taxable income x Tax rate
Q: What is taxable income?
A: Taxable income is the amount of income that is subject to tax. It includes income from employment, investments, and other sources.
Q: How do I determine the applicable tax rate?
A: To determine the applicable tax rate, you need to look at the tax table and find the income range that includes your taxable income.
Q: What if I have multiple sources of income?
A: If you have multiple sources of income, you need to calculate the tax payable for each source of income separately and then add them together.
Q: Can I claim deductions and credits to reduce my tax payable?
A: Yes, you can claim deductions and credits to reduce your tax payable. Deductions and credits can include things like charitable donations, mortgage interest, and child care expenses.
Q: How do I file my tax return?
A: To file your tax return, you need to complete a tax return form and submit it to the tax authority along with any required supporting documents.
Q: What if I make a mistake on my tax return?
A: If you make a mistake on your tax return, you need to correct it as soon as possible. You may need to file an amended tax return or pay additional tax.
Q: Can I appeal a tax assessment?
A: Yes, you can appeal a tax assessment if you disagree with the amount of tax payable. You need to file an appeal with the tax authority and provide evidence to support your case.
Q: How long do I have to pay my tax payable?
A: The time limit for paying tax payable varies depending on the tax authority and the type of tax. Generally, you have 30 days to pay your tax payable.
Q: Can I pay my tax payable in installments?
A: Yes, you can pay your tax payable in installments. You need to contact the tax authority to arrange a payment plan.
Q: What if I am unable to pay my tax payable?
A: If you are unable to pay your tax payable, you need to contact the tax authority to discuss your options. You may be able to set up a payment plan or request a temporary reduction in payments.
Q: Can I get help with my tax payable calculation?
A: Yes, you can get help with your tax payable calculation from a tax professional or the tax authority. They can provide guidance and support to ensure you are meeting your tax obligations.
Q: What are the consequences of not paying my tax payable?
A: The consequences of not paying your tax payable can include penalties, fines, and even imprisonment. It's essential to pay your tax payable on time to avoid these consequences.
Conclusion
In conclusion, tax payable calculation is a complex process that requires careful consideration of taxable income, tax rates, and deductions and credits. By understanding the tax payable calculation process and seeking help when needed, you can ensure you are meeting your tax obligations and avoiding penalties and fines.