6-1:Tax Tables, Worksheets, and Schedules - C

Financial Algebra Second Edition

Slide 1

6-1:Tax Tables, Worksheets, and Schedules

Learning Goals

The students will be able to:

• Express tax schedules algebraically.

• Compute federal income taxes using a tax table and tax schedules.

Financial Algebra Second Edition

Slide 2

Key Terms

• property tax
• sales tax
• taxable income
• income tax
• Internal Revenue
Service (IRS)
• single
• married filing jointly

• qualifying
widow(er)
• married filing
separately
• head of household
• constraint
• inequality
constraint

Financial Algebra Second Edition

Slide 3

Who Pays Taxes?

•

Who are the taxpayers?

•

What type of taxes
– Do you pay?
– Do your parents pay?

•

What does the statement “Your annual tax changes as your annual income changes” mean?

Financial Algebra Second Edition

Slide 5

Example 1: Ron is single. After completing IRS tax forms, he calculates his taxable income is $51,482. The instructions tell him to use the tax table to determine his taxes. How much does Ron owe in taxes?

𝟓𝟓𝟏𝟏, 𝟒𝟒𝟓𝟓𝟒𝟒 ≤ 𝒕𝒕 < 𝟓𝟓𝟏𝟏𝟓𝟓𝟒𝟒𝟒𝟒

​

Financial Algebra Second Edition

Slide 5

Example 1: Ron is single. After completing IRS tax forms, he calculates his taxable income is $51,482. The instructions tell him to use the tax table to determine his taxes. How much does Ron owe in taxes?

Multiple Choice

If r represents Ron’s taxable income, express his tax interval as an inequality using interval notation.

• 51,450 ≤ r < 51,500

• 51,450 < r < 51,500

• 51,450 > r > 51,500

• 51,450 ≤ r ≤ 51,500

Financial Algebra Second Edition

Slide 7

Example 2: Maria and Don are married taxpayers filing a joint return. Their combined taxable income is $153,900. The IRS offers a tax schedule so that taxpayers can calculate their tax. Use the tax schedule below for married
taxpayers filing jointly to calculate Maria and Don’s tax.

Financial Algebra Second Edition

Multiple Choice

Using the table to the left, what taxable income would yield a tax of exactly $28,765.00?

• $78,950

• $321,450

• $408,200

• $168,400

Financial Algebra Second Edition

Example 3: The IRS includes the tax schedule for information purposes only. For taxable incomes of $100,000 and above, taxpayers must use the tax worksheet. Here is a portion of the worksheet for married taxpayers filing jointly.
Calculate Maria and Don’s tax using this Section B worksheet.
Their combined taxable income is $153,900.

153,900

Financial Algebra Second Edition

Example 3: The IRS includes the tax schedule for information purposes only. For taxable incomes of $100,000 and above, taxpayers must use the tax worksheet. Here is a portion of the worksheet for married taxpayers filing jointly.
Calculate Maria and Don’s tax using this Section B worksheet.
Their combined taxable income is $153,900.

153,900

33,858

Financial Algebra Second Edition

Example 3: The IRS includes the tax schedule for information purposes only. For taxable incomes of $100,000 and above, taxpayers must use the tax worksheet. Here is a portion of the worksheet for married taxpayers filing jointly.
Calculate Maria and Don’s tax using this Section B worksheet.
Their combined taxable income is $153,900.

153,900

33,858

25,575.00

Multiple Choice

Davida and John have a taxable income of $172,675. Use the Married Filing Jointly worksheet in Example 3 to determine the amounts for columns (a) and (c). What is their calculated tax?

• a: 172,675

  b: 41,442

  Tax: 29,791

• a: 172,675

  b: 41,440

  Tax: 29,700

• a: 172,675

  b: 40,442

  Tax: 29,891

• a: 172,675

  b: 41,441

  Tax: 29,790

Multiple Choice

Chase has a taxable income of x dollars. The amount x is over $408,200, but not over $612,350. Express his tax algebraically.

• 0.35x – 49,613

• 35x – 49,613

• 40,613 - 0.35x

• 35x + 49,613

Financial Algebra Second Edition

Robert Gerver | Richard Sgroi
© 2021 Cengage Learning, Inc.

Practice: Everyone has to turn in on paper to the substitute. No excuses.

Textbook:

Applications exercises at the end of the section 6.1
# 5 and # 11