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

A) Single, $34,200 of income. Taxable income is $34,200 - $6,300 (standard deduction) - $4,050 (personal exemption) = $23,850. Using the tax rate schedule, the tax owed is $1,781.25 - $1,780.15 (tax credits) = $1.10, rounded to $1.10.
B) Married, $95,000 of income. Taxable income is $95,000 - $12,600 (standard deduction) - ($4,050 * 2) (personal exemptions) = $74,300. Using the tax rate schedule, the tax owed is $16,705.25 - $15,747.85 (tax credits) = $957.40.
C) Single, $54,500 of income. Taxable income is $54,500 - $6,300 (standard deduction) - $4,050 (personal exemption) = $44,150. Using the tax rate schedule, the tax owed is $6,232.50 - $5,890.90 (tax credits) = $341.60.
D) Head of household, $72,200 of income. Taxable income is $72,200 - $9,300 (standard deduction) - $4,050 (personal exemption) = $58,850. Using the tax rate schedule, the tax owed is $10,901.25 - $10,295.15 (tax credits) = $606.10.
Therefore, the only best choice is A.

Find the Amount of Taxable Income and the Tax Owed