3 parts same chart for each part 2017 Tax Rate Schedule Sche

3 parts: same chart for each part.

2017 Tax Rate Schedule Schedule X-SIngle Schedule Z-Head of Household If taxable income is over: If taxable income is over But not But not over: The tax is: over: The tax is: 10% of taxable income $932.50 plus 15% of the excess over $9,325 $5.226.25 plus 25% of the excess over $37,950 $18.7 13.75 plus 28% of the excess over $91,900 $46.643.75 plus 33% of the excess over $191,650 $ 1 20.9 10.25 plus 35% of the excess over $416,700 $ 12 1,505.25 plus 39.6% of the excess cver $418,400 10% of taxable income $1,335.00 plus 15% of the excess over $13,350 $6,952.50 plus 25% of the excess over $50,800 $27,052.50 plus 28% of the excess over $131,200 $49.8 16.50 plus 33% of the excess over $212,500 $117,202.50 plus 35% of the excess over $416,700 $1 26.950.00 plus 39.6% of the excess over $444,550 0 $ 9,325 0 $ 13,350 S 9.325 $37.950 $91.900 $191,650 $4 16,700 $418,400 $37.950 $ 91.900 $191.650 $416,700 $41 8.400 $ 13,350 $ 50.800 $ 1 3 1.200 $21 2.500 $416.700 $444.550- $ 50,800 $ 131.200 $21 2.500 $41 6.700 $444.550 - Schedule Y-1-Marrled Fling Jointly or Qualifying Widow(er) Schedule Y-2-Marrled Fling Separately If taxable income is over But not If taxable Income Is over But not over: The tax is: over The tax is: $ 9.325 10% of taxable income $932.50 plus 1 5% of the excess over $9,325 $5,226.25 plus 25% of the excess over $37,950 $ 14,876.25 plus 28% of the excess over $76,550 $26,1 1 1 .25 plus 33% of the excess over $116,675 $56.364.00 plus 35% of the excess over $208,350 $65,814.00 plus 39.6% of the excess over $235,350 0 10% of taxable income $ 1,865.00 plus 1 5% of the excess over $18,650 $10.452.50 plus 25% of the excess over $75,900 $29,752.50 plus 28% of the excess over $153,100 $52.222.50 plus 33% of the excess cver $233,350 $ 1 1 2,728.00 plus 35% of the excess over $416,700 $ 1 3 1 ,628.00 plus 39.6% of the excess over $470,700 0 $ 18,650 $ 9,325 $ 37,950 $ 76.550 $ 1 16.675 $ 1 16.675 $208.350 $208.350 $235.350 $235.350- $ 37,950 $ 18,650 $75.900 $153,100 $233,350 $4 16,700 $470,700 $ 75,900 $153.100 $233,350 $416,700 $470,700 $ 76,550 -

Solution

a. Calculation of Taxable income as single taxpayer

b. If itemized deductions available

Note: It is assumed that itemized deduction of $5820 given in question is for both scenario and not just for engagement 2.

c. Itemized deduction of $8080

Description	Engagement 1	Engagement 2
Gross Income before	67500	67500
income from engagement	7030	7030
Additional for AGI deduction	3850	0
Adjusted Gross Income	70,680	74,530
Itemized deduction(Note 1)	0	3,180
Personal Exemption (Note 2)	4050	4050
Taxable Income	66,630	67,300