Question

Use the table to answer the question.Sample IRS Tax Schedule, 20xx2GROSS TAXABLE EARNINGS, ETAXES DUE3Single 40 to 6,999.990.1E57,000 to 28,399.990.15E − 350628,400 to 68,799.990.25E − 3,190768,800 to 143,499.990.28E − 5,2548143,500 to 311,949.990.33E − 12,4299311,950 and over0.35E − 18,66810Head of Household 110 to 9,999.990.10E1210,000 to 38,049.990.15E − 5001338,050 to 98,249.990.25E − 4,3051498,250 to 159,099.990.28E − 7,252.5015159,100 to 311,949.990.33E − 15,207.5016311,950 and over0.35E − 21,346.5017Married Filing Jointly 180 to 13,999.990.10E1914,000 to 56,799.990.15E − 7002056,800 to 114,649.990.25E − 6,38021114,650 to 174,699.990.28E − 9,819.5022174,700 to 311,949.990.33E − 18,554.5023311,950 and over0.35E − 24,793.5024Married Filing Separately 250 to 6,999.990.10E267,000 to 28,399.990.15E − 3502728,400 to 57,324.990.25E − 3,1902857,325 to 87,349.990.28E − 4,909.752987,350 to 155,974.990.33E − 9,277.2530155,975 and over0.35E − 12,396.75Joshua Smith's income was $56,500. Compare his taxes due if he files as single to the amount due if he files as head of household. Show your work or explain how you got your answer.

Answer 1

From the table, Joshua's $56,500 falls in the 28,400–68,799.99 bracket for Single and in the 38,050–98,249.99 bracket for Head of Household. The table gives tax formulas for those brackets:

- Single: tax = 0.25E − 3,190
= 0.25(56,500) − 3,190
= 14,125 − 3,190
= $10,935

- Head of Household: tax = 0.25E − 4,305
= 0.25(56,500) − 4,305
= 14,125 − 4,305
= $9,820

Difference: $10,935 − $9,820 = $1,115.

So filing as Head of Household would reduce Joshua’s tax by $1,115 compared with filing Single.