Find the amount of taxable income and the tax owed for the following people. The letter following the name indicates the marital status and all married people are filing jointly. Use $4050 for each personal exemption; $6300 as the standard deduction for single taxpayers, $12,600 for married taxpayers filing jointly, and $9300 for head of household and the following tax rate schedule.
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Question

Find the amount of taxable income and the tax owed for the following people. The letter following the name indicates the marital status and all married people are filing jointly. Use $4050 for each personal exemption; $6300 as the standard deduction for single taxpayers, $12,600 for married taxpayers filing jointly, and $9300 for head of household and the following tax rate schedule. 
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Quizplus · Accepted Answer

For person A: 
- Income: $125,000
- Personal exemptions: $12,150 ($4050 x 3)
- Standard deduction: $12,600 (married filing jointly)
Taxable income = $100,250
Tax bracket = 25%
Tax owed = $18,310

For person B: 
- Income: $90,000
- Personal exemptions: $12,150 ($4050 x 3)
- Standard deduction: $12,600 (married filing jointly)
Taxable income = $65,250
Tax bracket = 15%
Tax owed = $8,916

For person C: 
- Income: $100,000
- Personal exemptions: $8,100 ($4050 x 2)
- Standard deduction: $6,300
Taxable income = $85,600
Tax bracket = 25%
Tax owed = $13,485.50

For person D: 
- Income: $85,000
- Personal exemptions: $8,100 ($4050 x 2)
- Standard deduction: $6,300
Taxable income = $70,600
Tax bracket = 15%
Tax owed = $9,222

Therefore, the best choice is B, as it correctly identifies the taxable income and tax owed for the given information.

Find the Amount of Taxable Income and the Tax Owed