Presentation on theme: "7-1 TAX TABLES, WORKSHEETS, AND SCHEDULES"— Presentation transcript:
1 7-1 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
2 Key Terms property tax sales tax income tax taxable income tax Internal Revenue Service (IRS)singlemarried filing jointlyqualifying widow(er)married filing separatelyhead of household
3 Example 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?
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 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.
6 CHECK YOUR UNDERSTANDING Using the table, what taxable income would yield a tax of exactly $8,962.50?
7 Example 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.
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.