Exercises
Use the portion of the tax table shown here to answer Exercises 1 – 7.
If line 43 If line 43 If line 43
(taxable And you are — (taxable And you are — (taxable And you are —
income) is — income) is — income) is —
At But Single Married Married Head At But Single Married Married Head At But Single Married Married Head
least less filing filing of a least less filing filing of a least less filing filing of a
than jointly sepa- house- than jointly sepa- house- than jointly sepa- house-
* rately hold * rately hold * rately hold
Your tax is — Your tax is — Your tax is —
77,000 80,000 83,000
77,000 77,050 15,600 11,944 15,939 14,319 80,000 80,050 16,385 12,694 16,779 15,069 83,000 83,050 17,225 13,444 17,619 15,819
77,050 77,100 15,613 11,956 15,953 14,331 80,050 80,100 16,399 12,706 16,793 15,081 83,050 83,100 17,239 13,456 17,633 15,831
77,100 77,150 15,625 11,969 15,967 14,344 80,100 80,150 16,413 12,719 16,807 15,094 83,100 83,150 17,253 13,469 17,647 15,844
77,150 77,200 15,638 11,981 15,981 14,356 80,150 80,200 16,427 12,731 16,821 15,106 83,150 83,200 17,267 13,481 17,661 15,856
77,200 77,250 15,650 11,994 15,995 14,369 80,200 80,250 16,441 12,744 16,835 15,119 83,200 83,250 17,281 13,494 17,675 15,869
77,250 77,300 15,663 12,006 16,009 14,381 80,250 80,300 16,455 12,756 16,849 15,131 83,250 83,300 17,295 13,506 17,689 15,881
77,300 77,350 15,675 12,019 16,023 14,394 80,300 80,350 16,469 12,769 16,863 15,144 83,300 83,350 17,309 13,519 17,703 15,894
77,350 77,400 15,688 12,031 16,037 14,406 80,350 80,400 16,483 12,781 16,877 15,156 83,350 83,400 17,323 13,531 17,717 15,906
77,400 77,450 15,700 12,044 16,051 14,419 80,400 80,450 16,497 12,794 16,891 15,169 83,400 83,450 17,337 13,544 17,731 15,919
77,450 77,500 15,713 12,056 16,065 14,431 80,450 80,500 16,511 12,806 16,905 15,181 83,450 83,500 17,351 13,556 17,745 15,931
77,500 77,550 15,725 12,069 16,079 14,444 80,500 80,550 16,525 12,819 16,919 15,194 83,500 83,550 17,365 13,569 17,759 15,944
77,550 77,600 15,738 12,081 16,093 14,456 80,550 80,600 16,539 12,831 16,933 15,206 83,550 83,600 17,379 13,581 17,773 15,956
77,600 77,650 15,750 12,094 16,107 14,469 80,600 80,650 16,553 12,844 16,947 15,219 83,600 83,650 17,393 13,594 17,787 15,969
77,650 77,700 15,763 12,106 16,121 14,481 80,650 80,700 16,567 12,856 16,961 15,231 83,650 83,700 17,407 13,606 17,801 15,981
77,700 77,750 15,775 12,119 16,135 14,494 80,700 80,750 16,581 12,869 16,975 15,244 83,700 83,750 17,421 13,619 17,815 15,994
77,750 77,800 15,788 12,131 16,149 14,506 80,750 80,800 16,595 12,881 16,989 15,256 83,750 83,800 17,435 13,631 17,829 16,006
77,800 77,850 15,800 12,144 16,163 14,519 80,800 80,850 16,609 12,894 17,003 15,269 83,800 83,850 17,449 13,644 17,843 16,019
77,850 77,900 15,813 12,156 16,177 14,531 80,850 80,900 16,623 12,906 17,017 15,281 83,850 83,900 17,463 13,656 17,857 16,031
77,900 77,950 15,825 12,169 16,191 14,544 80,900 80,950 16,637 12,919 17,031 15,294 83,900 83,950 17,477 13,669 17,871 16,044
77,950 78,000 15,838 12,181 16,205 14,556 80,950 81,000 16,651 12,931 17,045 15,306 83,950 84,000 17,491 13,681 17,885 16,056
1. Abe is single. His taxable income is $83,492. How much does Abe owe in taxes?
Tax Tables, Worksheets,
and Schedules
7-1
or duplicated, or posted to a publicly accessible website, in whole or in part.
Name _____________________________________________________________ Date ________________________
3. Write a piecewise function to represent the tax f(x) for the fi rst three taxable income intervals
in the schedule below for a single taxpayer.
Schedule X— If your filing status is Single
The tax is:If your taxable
income is: of the
amount
over—
But not
over—
Over—
4. Examine the tax schedule for the years 1914 and 2009. The schedule in 1914 applied to all
taxpayers. The schedule for 2009 is for a single taxpayer. Marginal Tax Rate is the rate of tax
a taxpayer pays at his/her income level.
1914
Marginal Tax
Rate
Tax Brackets
Over But not over
1.0% $0 $20,000
2.0% $20,000 $50,000
3.0% $50,000 $75,000
4.0% $75,000 $100,000
5.0% $100,000 $250,000
6.0% $250,000 $500,000
7.0% $500,000
a. What was the marginal tax rate for a taxpayer with a taxable income of $40,000 in 1914?
b. What was the marginal tax rate for a taxpayer with a taxable income of $40,000 in 2009?
c. Based on the marginal tax rate, fi nd the di erence in tax between a single taxpayer in
1914 making $90,000 and a single taxpayer in 2009 making the same amount.
5. Examine the following piecewise function that models the tax computation worksheet for a
single taxpayer in 2005. Write the tax equations in y = mx + b form.
c(x) =
{
0
0
0
2009
Marginal Tax
Rate
Tax Brackets
Over But not over
10.0% $0 $8,375
15.0% $8,375 $34,000
25.0% $34,000 $82,400
28.0% $82,400 $171,850
33.0% $171,850 $373,650
35.0% $373,650
14,652.50 + 0.28(x – 71,950)
36,548.50 + 0.33(x – 150,150)
94,727.50 + 0.35(x – 326,450)
100,000 < x ≤ 150,150
150,150 < x ≤ 326,450
x > 326,450
0
0.10x
0 < x ≤ 8,025
2.0%
$21,600
or duplicated, or posted to a publicly accessible website, in whole or in part.
Name _____________________________________________________________ Date ________________________
Exercises
1. Arthur’s employer withheld $15,987.76 in federal income tax. After completing his return,
Arthur has determined that his tax is $18,945.22. Will Art get a refund, or does he owe the IRS
and how much?
4. Davia and Bill are married and fi le their taxes jointly. Davia’s taxable income was $50,675
and Bill’s was $32,802. Davia’s employer withheld $11,654 in federal taxes. Bill’s employer
withheld $7,345 in federal taxes.
a. What is their combined taxable income?
b. Use the tax tables from Lesson 7-1 in this workbook to determine their tax.
c. Do they get a refund?
d. Find the di erence between their tax and the amount withheld by their employers.
5. Parker is single and paying o his graduate student loan. The monthly payment is $679.34.
He is hoping to receive an income tax refund that is large enough to make at least one
monthly payment. His taxable income is $77,911 and his employer withheld $19,458 in
federal taxes.
a. How much of a refund will Tony receive?
b. How many loan payments will Parker be able to make with this refund?
Forms 1040EZ and 1040A
7-4
$83,477
$13,556
yes
$5,443
$3,633
5
Name _____________________________________________________________ Date ________________________
Exercises
1. Mike and Lisa Lerner had combined wages of $91,301 last year. They also had a bank interest
of $792 and $667. They received stock dividends of $287 and $530. During the year, Lisa won
a $1,000 prize. Find the total income from wages, bank interest, dividends, and the prize.
2. Paul and Mary had $78,111.19 in income from their jobs and their bank interest. They also
had $2,139 worth of moving expenses, and Paul paid $6,000 in alimony. These two expenses
are deductions from income. Find their adjusted gross income.
3. The Starkey family had total income of i dollars. They also had a dollars in adjustments to
income. Express their adjusted gross income algebraically.
4. The Kivetsky family had an adjusted gross income of $119,245.61. They included medical
deductions on Schedule A. They had $14,191 in medical expenses. Medical insurance
covered 80% of these expenses. The IRS allows medical and dental expenses deductions for
the amount that exceeds 7.5% of a taxpayer’s adjusted gross income. How much can they
claim as a medical deduction?
5. Anita’s adjusted gross income was a dollars last year. If she had m dollars of medical expenses
last year, and 80% of these expenses were covered by her insurance, express her medical
expense deduction algebraically.
6. The Mazzeo family donated c dollars in cash to charity last tax year. They also donated b bags
of used clothing valued at $50 each. They donated two used computers valued at x dollars
7. The Holfester family took 5
1
__
2
hours to gather information for their Schedule A. The itemized
deductions saved them $4,095 in taxes. What was the mean savings per hour to fi ll out
Schedule A? Round to the nearest dollar.
8. The Lowatsky family had $9,441 worth of hurricane damage that was not covered by
insurance. They need to follow IRS procedures to take a casualty deduction on Schedule A.
a. The IRS requires that $100 be deducted from each casualty. What is the total casualty loss
after the $100 is deducted?
b. Their adjusted gross income is $67,481. Find 10% of their adjusted gross income.
c. Their Schedule A casualty deduction can be found by subtracting 10% of the adjusted
gross income from the answer to part a. What is their casualty loss deduction?
Form 1040 and Schedules A and B
7-5
$94,577
$69,972.19
i – a
$0
0.20m – 0.075a or $0, whichever is greater
c + 50b + 2x
$745
$9,341
$6,748.10
$2,592.90
or duplicated, or posted to a publicly accessible website, in whole or in part.