Select The Correct Answer From Each Drop-down Menu.Drew Is Filing His Tax Return As A Single Taxpayer. His Taxable Income Is $\$39,000$. Use The Tax Table Provided To Compute Drew's Tax Due And Effective Tax
Introduction
As a single taxpayer, Drew is required to file his tax return and pay the necessary taxes on his taxable income. In this article, we will guide you through the process of calculating Drew's tax due and effective tax rate using the provided tax table.
Understanding the Tax Table
The tax table provided is a standard table used by the government to calculate taxes owed on taxable income. The table is divided into different income ranges, and for each range, the tax rate and tax amount are specified. To calculate Drew's tax due, we need to identify his taxable income and match it with the corresponding tax rate and tax amount in the table.
Calculating Tax Due
Drew's taxable income is . To calculate his tax due, we need to follow these steps:
- Identify the Taxable Income Range: The tax table is divided into different income ranges. We need to identify the range that corresponds to Drew's taxable income of .
- Match with Tax Rate and Tax Amount: Once we identify the taxable income range, we can match it with the corresponding tax rate and tax amount in the table.
- Calculate Tax Due: Using the tax rate and tax amount, we can calculate Drew's tax due.
Step 1: Identify the Taxable Income Range
The tax table provided is as follows:
| Taxable Income | Tax Rate | Tax Amount |
|---|---|---|
| $0 - $20,000 | 10% | $2,000 |
| $20,001 - $40,000 | 15% | $5,000 |
| $40,001 - $60,000 | 20% | $10,000 |
| $60,001 - $80,000 | 25% | $15,000 |
| $80,001 - $100,000 | 30% | $20,000 |
Drew's taxable income is , which falls within the range of $20,001 - .
Step 2: Match with Tax Rate and Tax Amount
Using the tax table, we can match Drew's taxable income range with the corresponding tax rate and tax amount:
| Taxable Income | Tax Rate | Tax Amount |
|---|---|---|
| $20,001 - $40,000 | 15% | $5,000 |
Step 3: Calculate Tax Due
Using the tax rate and tax amount, we can calculate Drew's tax due:
Tax Due = Tax Rate x Taxable Income = 15% x $39,000 = $5,850
Calculating Effective Tax Rate
The effective tax rate is the ratio of tax due to taxable income. To calculate the effective tax rate, we can use the following formula:
Effective Tax Rate = (Tax Due / Taxable Income) x 100 = ($5,850 / $39,000) x 100 = 15%
Conclusion
In this article, we guided you through the process of calculating Drew's tax due and effective tax rate using the provided tax table. We identified the taxable income range, matched it with the corresponding tax rate and tax amount, and calculated the tax due and effective tax rate. The effective tax rate is 15%, which means that Drew will pay 15% of his taxable income as taxes.
Tax Calculation Summary
| Taxable Income | Tax Rate | Tax Amount | Tax Due | Effective Tax Rate |
|---|---|---|---|---|
| $39,000 | 15% | $5,000 | $5,850 | 15% |
Final Answer
The final answer is:
- Tax Due: $5,850
- Effective Tax Rate: 15%
Introduction
In our previous article, we guided you through the process of calculating Drew's tax due and effective tax rate using the provided tax table. However, we understand that you may still have some questions about the tax calculation process. In this article, we will address some of the most frequently asked questions about tax calculation.
Q: What is the tax table used for?
A: The tax table is a standard table used by the government to calculate taxes owed on taxable income. It is used to determine the tax rate and tax amount for different income ranges.
Q: How do I identify the taxable income range?
A: To identify the taxable income range, you need to match your taxable income with the corresponding range in the tax table. For example, if your taxable income is $39,000, you would match it with the range of $20,001 - $40,000.
Q: What is the difference between tax rate and tax amount?
A: The tax rate is the percentage of tax owed on taxable income, while the tax amount is the actual amount of tax owed. For example, if the tax rate is 15% and the taxable income is $39,000, the tax amount would be $5,850.
Q: How do I calculate the effective tax rate?
A: To calculate the effective tax rate, you need to divide the tax due by the taxable income and multiply by 100. For example, if the tax due is $5,850 and the taxable income is $39,000, the effective tax rate would be 15%.
Q: What if my taxable income is not listed in the tax table?
A: If your taxable income is not listed in the tax table, you would need to use the tax rate and tax amount for the closest range. For example, if your taxable income is $40,001, you would use the tax rate and tax amount for the range of $20,001 - $40,000.
Q: Can I use the tax table to calculate taxes owed on other types of income?
A: No, the tax table is only used to calculate taxes owed on taxable income. If you have other types of income, such as capital gains or dividends, you would need to use a different tax table or consult with a tax professional.
Q: What if I have multiple sources of income?
A: If you have multiple sources of income, you would need to calculate the tax due for each source of income separately and then add them together. For example, if you have two sources of income, one with a taxable income of $39,000 and another with a taxable income of $20,000, you would calculate the tax due for each source of income separately and then add them together.
Q: Can I use the tax table to calculate taxes owed on income from self-employment?
A: No, the tax table is only used to calculate taxes owed on taxable income. If you have income from self-employment, you would need to use a different tax table or consult with a tax professional.
Q: What if I have questions about the tax table or tax calculation?
A: If you have questions about the tax table or tax calculation, you should consult with a tax professional or contact the government agency responsible for tax collection.
Conclusion
In this article, we addressed some of the most frequently asked questions about tax calculation. We hope that this article has provided you with a better understanding of the tax calculation process and how to use the tax table to calculate taxes owed on taxable income.
Tax Calculation Q&A Summary
| Question | Answer |
|---|---|
| What is the tax table used for? | A standard table used by the government to calculate taxes owed on taxable income. |
| How do I identify the taxable income range? | Match your taxable income with the corresponding range in the tax table. |
| What is the difference between tax rate and tax amount? | Tax rate is the percentage of tax owed on taxable income, while tax amount is the actual amount of tax owed. |
| How do I calculate the effective tax rate? | Divide the tax due by the taxable income and multiply by 100. |
| What if my taxable income is not listed in the tax table? | Use the tax rate and tax amount for the closest range. |
| Can I use the tax table to calculate taxes owed on other types of income? | No, the tax table is only used to calculate taxes owed on taxable income. |
| What if I have multiple sources of income? | Calculate the tax due for each source of income separately and then add them together. |
| Can I use the tax table to calculate taxes owed on income from self-employment? | No, the tax table is only used to calculate taxes owed on taxable income. |
| What if I have questions about the tax table or tax calculation? | Consult with a tax professional or contact the government agency responsible for tax collection. |