Tax Rate Single ​10% up to​ $9275 ​15% ​ $9276 to​ $37,650 ​25% ​ $37,651 to​ $91,150 ​28% ​ $91,151 to​ $190,150 ​33% ​ $190,151 to​ $413,350 ​35% ​ $413,351 to​ $415,050 ​39.6% more than​ $415,050...














































Tax Rate


Single


​10%


up to​ $9275


​15%


​ $9276 to​ $37,650


​25%


​ $37,651 to​ $91,150


​28%


​ $91,151 to​ $190,150


​33%


​ $190,151 to​ $413,350


​35%


​ $413,351 to​ $415,050


​39.6%


more than​ $415,050


Standard Deduction


​ $6300


Exemptions

​(per person)


​ $4050


You would like to have $550,000 in 39 years by making regular deposits at the end of each month in an annuity that pays 6% compounded monthly. The table below shows the 2016 marginal tax​ rates, standard​ deduction, and exemptions for a single person. Complete parts​ (a) through​ (c).


a. Determine the deposit at the end of each month.


In order to have 550,000 in 39 ​years, you should deposit ​____ each month.

​(Round up to the nearest​ dollar.)


b. Assume that the annuity in part​ (a) is a​ tax-deferred IRA belonging to a man whose gross income in 2005 was $52,000.  Use the table on the left to calculate his 2005 taxes first with and then without the IRA. Assume the man is single with no​ dependents, has no tax​ credits, and takes the standard deduction.



The income tax with the IRA is ​$____. ​(Use the answer from part​ (a) to find this answer. Round up to the nearest cent as​ needed.)



The income tax without the IRA is ​$_____. ​(Use the answer from part​ (a) to find this answer. Round up to the nearest cent as​ needed.)



c. What percent of his gross income are the​ man's federal taxes with and without the​ IRA?


The​ man's taxes are _____​% of his gross income with the IRA. ​(Round to the nearest tenth as​ needed.)


The​ man's taxes are _______​% of his gross income without the IRA. ​(Round to the nearest tenth as​ needed.)




Jun 08, 2022
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