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15 February, 02:59

Linda is a qualifying widow in 2018. In 2018, she reports $80,000 of taxable income (all ordinary). What is her gross tax liability using the tax rate schedules? (Tax rate schedule)

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  1. 15 February, 05:20
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    The correct answer to the following question is $9479.

    Explanation:

    The taxable income (ordinary) of Linda in year 2018 is $80,000.

    Now as per 2018 tax schedule Linda will have to pay $8907 and since her taxable income is above $77,400, that means she will have to pay 22% tax on the difference between $80,000 and $77,400, so therefore her tax liability would be -

    $8907 + 22% x $2260 ($80,000 - $77,400)

    = $8907 + $572

    = $9479
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