To determine Joshua Smith's taxes due based on his income of $56,500, we will compute the taxes using both filing statuses: Single and Head of Household.
1. Filing as Single:
- Income: $56,500 falls in the bracket of $56,800 to $114,649.99.
- Formula: Tax = 0.25E - 6,380, where E is the taxable earnings.
- Calculating the tax: \[ \text{Tax} = 0.25 \times 56,500 - 6,380 = 14,125 - 6,380 = 7,745 \]
2. Filing as Head of Household:
- Income: $56,500 falls in the bracket of $38,050 to $98,249.99.
- Formula: Tax = 0.25E - 4,305.
- Calculating the tax: \[ \text{Tax} = 0.25 \times 56,500 - 4,305 = 14,125 - 4,305 = 9,820 \]
Comparing the Two Tax Amounts:
- Taxes due if filed as Single: $7,745
- Taxes due if filed as Head of Household: $9,820
Conclusion:
If Joshua files as Single, he will owe $7,745 in taxes. If he files as Head of Household, he will owe $9,820 in taxes. Thus, it would be more beneficial for him to file as Single as it results in lower taxes.