Presentation on theme: "7-1 TAX TABLES, WORKSHEETS, AND SCHEDULES"— Presentation transcript:
17-1 TAX TABLES, WORKSHEETS, AND SCHEDULES Banking4/13/20177-1 TAX TABLES, WORKSHEETS, AND SCHEDULESOBJECTIVESExpress tax schedules algebraically.Compute federal income taxes using a tax table and tax schedules.Chapter 1
2Key Terms property tax sales tax income tax taxable income tax Internal Revenue Service (IRS)singlemarried filing jointlyqualifying widow(er)married filing separatelyhead of household
3Example 1Ron 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?
4CHECK YOUR UNDERSTANDING If r represents Ron’s taxable income, express his tax interval as an inequality using both interval notation and compound inequality notation.
5Example 2Maria 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.
6CHECK YOUR UNDERSTANDING Using the table, what taxable income would yield a tax of exactly $8,962.50?
7Example 3The 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.
8CHECK 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?
9EXTEND 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.