Calculate Income Tax Unmarried head of house hold with one d

Calculate Income Tax:

Unmarried head of house hold with one dependent child

Gross: $40,000

Adjustments: $1500

Deductions: $3600 state taxes, $800 charity

Tax credit: $2500

Tax Rate                                                                                           Head of household

10%                                                                                                   up to $12,400

15%                                                                                                   12,401 to 47350

25%                                                                                                    47,351 to 122,300

Standard deduction                                                                             $8700

Exemptions (per person)                                                                     $3800

Solution

Gross income

40,000

Minus Exemptions (2 times 3800, one for the taxpayer and one for the dependent child)

7,600

Minus Standard deduction (8700 greater than their itemized of 3600 and 800)

8,700

Taxable income

23,700

Income tax liability (10%*12,400 + 15%*(23,700