Unformatted text preview: liability than is actually due. Sometimes taxpayers choose to pay “too much” as a method of forced savings. 41. Cameron is single and has taxable income of $42,443. Determine his tax liability using the Tax Tables and using the Tax Rate Schedule. Why is there a difference between the two amounts? Answer: Cameron’s tax using the tax tables is $7,030. His tax using the tax rate schedules is $7,034.50. There is a difference between the two amounts because the tax tables are based on taxable income at the midpoint of the range. Thus, the tax tables are based on a taxable income of $42,425 while the tax rate schedules are based on taxable income of $42,443....
View Full Document
This note was uploaded on 09/16/2011 for the course ACCOUNTING 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.
- Spring '11