T12S-Chp-01-1C-Basic-Tax-Computations-2012

T12S-Chp-01-1C-Basic-Tax-Computations-2012 - Basic Tax...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Basic Tax Computations 960cb60ea874b06e105f569917caba6f75c76001.xls Page 1 of 2 Part 1. Sam and Susan are single Sam-2011 Susan-2011 Gross Salary in 2011 $70,000 $120,000 Interest on City of Charlotte Bonds $5,000 $5,000 Federal income tax withheld $10,000 $20,000 Allowable deductions on Form 1040 ($20,000) ($20,000) Taxable income Exhibit 1 Income Tax before credits? (below) Pg. 18, 20 Tax Due to IRS or (Refund)? Income tax computations below Sam Taxable Income Tax Rate Income Tax Front Top full layer Cover Excess Amount X = Total Susan Taxable Income Tax Rate Income Tax Front Top full layer Cover Excess Amount X = Total Part 2. Continue the case above Sam Susan Pg. 8 Marginal tax rate? Pg. 8 Average tax rate? Pg. 8 Effective tax rate? Part 3 Social Security Taxes-Case Above Sam Susan How much social security tax is withheld? $0 $0 Base Tax Rate Tax Pg. 12 Sam OASDI X 6.20% = MHI X 1.45% = Total Tax - Sam Pg. 12 Susan OASDI X 6.20% = MHI X 1.45% = Total Tax - Susan Note: temporary change in tax law for social security for 2011. Part 4
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

T12S-Chp-01-1C-Basic-Tax-Computations-2012 - Basic Tax...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online