To determine Joshua Smith's taxes due based on his reported income of $56,500, we have to consult the tax brackets for both "Single" and "Head of Household" filing statuses. We'll calculate the taxes owed for both categories.
Filing as Single
According to the tax schedule:
- For income from $28,400.00 to $68,799.99, the formula is:
\[ \text{Taxes Due} = 0.25E - 3,190 \]
Where \( E \) is Joshua's taxable earnings. Since his income falls into this bracket:
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Identify the income \( E \):
- \( E = 56,500 \)
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Calculate the taxes due:
- Using the formula: \[ \text{Taxes Due} = 0.25(56,500) - 3,190 \]
- Calculate \( 0.25 \times 56,500 = 14,125 \)
- Now, subtract \( 3,190 \): \[ 14,125 - 3,190 = 10,935 \]
So, when filing as Single, Joshua's taxes due are $10,935.00.
Filing as Head of Household
Next, we'll analyze his income under the "Head of Household" bracket:
According to the tax schedule:
- For income from $38,050.00 to $98,249.99, the formula is:
\[ \text{Taxes Due} = 0.25E - 4,305 \]
Since Joshua's income is in this category:
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Again, identify the income \( E \):
- \( E = 56,500 \)
-
Calculate the taxes due:
- Using the formula: \[ \text{Taxes Due} = 0.25(56,500) - 4,305 \]
- Again, we know \( 0.25 \times 56,500 = 14,125 \)
- Now, subtract \( 4,305 \): \[ 14,125 - 4,305 = 9,820 \]
So, when filing as Head of Household, Joshua's taxes due are $9,820.00.
Summary
- Taxes due if filing as Single: $10,935.00
- Taxes due if filing as Head of Household: $9,820.00
Conclusion
Joshua would save money and owe less in taxes by filing as Head of Household, with a tax liability of $9,820, compared to $10,935 if he filed as Single. Therefore, Joshua Smith should consider filing as Head of Household for a lower tax obligation.