Asked by Maryisabel Salinas on May 11, 2024
Verified
Rates for a head-of-household taxpayer are 10% of taxable income up to $11,950 and 15% thereafter up to $45,550. Jay Jasper, head of household, earned $32,000. He took the standard deduction of $8,400 for a head of household and exemptions of $3,650 each for himself and his two children. Compute the amount of income tax before credits.
Standard Deduction
A fixed amount deducted from a taxpayer's income to reduce taxable income, not requiring itemization.
Taxable Income
The amount of income that is subject to taxation, after all deductions and exemptions are factored in.
- Evaluate the income tax demands on individuals under differing tax settings.
- Develop an understanding and execute the use of standard deductions and exemptions in the context of computing taxes.
Verified Answer
CS
Learning Objectives
- Evaluate the income tax demands on individuals under differing tax settings.
- Develop an understanding and execute the use of standard deductions and exemptions in the context of computing taxes.