Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductlons, and Exemptlons**

- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$, which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$.
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Stephen earned $62,292 from wages as an accountant and made $2987 in interest. Find how much he paid in FICA and income taxes. Assume he is single and takes the standard deduction.

Question

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductlons, and Exemptlons**

- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$, which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$.
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Stephen earned $62,292 from wages as an accountant and made $2987 in interest. Find how much he paid in FICA and income taxes. Assume he is single and takes the standard deduction.

Quizplus · Accepted Answer

To find the taxes Stephen paid, calculate his taxable income by subtracting the standard deduction for a single filer ($13,850 for 2023) from his total income ($62,292 + $2,987). Then, apply the tax brackets for 2023 to find the income tax. Add the FICA taxes (Social Security at 6.2% and Medicare at 1.45%) on his wages. The total is approximately $14,514.

Solve the Problem 15%15 \%15% Marginal Rate Affects Income Starting At $8925\$ 8925$8925

Solve the Problem $15 \%$ Marginal Rate Affects Income Starting At $\$ 8925$