8netinvestment single 200000 married 250000

Info iconThis preview shows page 1. Sign up to view the full content.

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

Unformatted text preview: te 2013 Tax Liability Using Calculate 2013 Tax Liability Using Taxable Income Step 4: Calculate the taxes owed on $50,000 of taxable income Bracket = $36,250 to $87,850 (25% marginal) Tax = $4,991.25 + (25% ($50,000 – $36,250)) Tax = $4,991.25 + $3,437.50 Tax = $8,428.75 Effective or average tax rate = $8,428.75/$50,000 or 16.9% Not on midterm 36 Tax Schedule Brackets Tax Schedule Brackets All brackets are adjusted upward each year for inflation Prevents taxpayers from paying higher taxes on inflation related increases in income 37 Taxes and The Rich Taxes and The Rich Source: IRS 2011 Tax Stats Top 1% Pay 30% Top 3% Pay 51% Top 12% Pay 75% Top 52% Pay 98% Bottom 48% Pay 2% Adjusted Gross Income (AGI) Totals to $1,046 billion of income tax; excludes about $600 billion of payroll taxes paid by individuals 38 New Other Taxes 2013 & Beyond Rate Filer Taxable Income 3.8% net investment Single > $200,000 Married > $250,000 Medicare tax Pease limit Single > $250,000 Pease limit Married > $300,000 PEP Single > $250,000 ­ $372,501 PEP Married > $300,000 ­ $422,501 income tax + 0.9% M...
View Full Document

Ask a homework question - tutors are online