1. 7-1 TAX TABLES, WORKSHEETS, AND SCHEDULES
Banking
4/13/2017
7-1 TAX TABLES, WORKSHEETS, AND SCHEDULES
OBJECTIVES
Express tax schedules algebraically.
Compute federal income taxes using a tax table and tax schedules.
Chapter 1

2. Key Terms property tax sales tax income tax taxable income tax
Internal Revenue Service (IRS)
single
married filing jointly
qualifying widow(er)
married filing separately
head of household

3. Example 1
Ron is single. He is using an IRS tax form and calculates that 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?

4. CHECK YOUR UNDERSTANDING
If r represents Ron’s taxable income, express his tax interval as an inequality using both interval notation and compound inequality notation.

5. 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.

6. CHECK YOUR UNDERSTANDING
Using the table, what taxable income would yield a tax of exactly $8,962.50?

7. Example 3
The IRS includes the tax schedule for information purposes only. For taxable incomes over $100,000, 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 worksheet.

8. CHECK YOUR UNDERSTANDING
Davida and John have a taxable income of $118,675. Use the Married Filling Jointly worksheet to determine the amounts for columns (a) and (c). What is their calculated tax?

9. EXTEND YOUR UNDERSTANDING
Chase has a taxable income of x dollars. This amount is over $100,000, but not over $131,450. Express his tax algebraically.