1. Award: 10.00 points Chap 08 2025 - Individual Income Tax Computation and Tax Credits
The following are a series of tables that may be referred to in several questions throughout your test. Please refer to these tables as needed or as directed.
2024 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over: The tax is:
$0 $ 11,600 10% of taxable income
$ 11,600 $ 47,150 $1,160 plus 12% of the excess over $11,600
$ 47,150 $ 100,525 $5,426 plus 22% of the excess over $47,150
$ 100,525 $ 191,950 $17,168.50 plus 24% of the excess over $100,525
$ 191,950 $ 243,725 $39,110.50 plus 32% of the excess over $191,950
$ 243,725 $ 609,350 $55,678.50 plus 35% of the excess over $243,725
$ 609,350 — $183,647.25 plus 37% of the excess over $609,350
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over: The tax is:
$0 $ 23,200 10% of taxable income
$ 23,200 $ 94,300 $2,320 plus 12% of the excess over $23,200
$ 94,300 $ 201,050 $10,852 plus 22% of the excess over $94,300
$ 201,050 $ 383,900 $34,337 plus 24% of the excess over $201,050
$ 383,900 $ 487,450 $78,221 plus 32% of the excess over $383,900
$ 487,450 $ 731,200 $111,357 plus 35% of the excess over $487,450
$ 731,200 — $196,669.50 plus 37% of the excess over $731,200
Schedule Z-Head of Household
If taxable income is over: But not over: The tax is:
$0 $ 16,550 10% of taxable income
$ 16,550 $63,100 $1,655 plus 12% of the excess over $16,550
$ 63,100 $ 100,500 $7,241 plus 22% of the excess over $63,100
$ 100,500 $ 191,950 $15,469 plus 24% of the excess over $100,500
$ 191,950 $ 243,700 $37,417 plus 32% of the excess over $191,950
$ 243,700 $ 609,350 $53,977 plus 35% of the excess over $243,700
$ 609,350 — $181,954.50 plus 37% of the excess over $609,350
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over: The tax is:
, $0 $ 11,600 10% of taxable income
$ 11,600 $ 47,150 $1,160 plus 12% of the excess over $11,600
$ 47,150 $ 100,525 $5,426 plus 22% of the excess over $47,150
$ 100,525 $ 191,950 $17,168.50 plus 24% of the excess over $100,525
$ 191,950 $ 243,725 $39,110.50 plus 32% of the excess over $191,950
$ 243,725 $ 365,600 $55,678.50 plus 35% of the excess over $243,725
$ 365,600 — $98,334.75 plus 37% of the excess over $365,600
Tax Rates for Net Capital Gains and Qualified Dividends
Taxable Income
Rate* Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates
0% $0 − $94,050 $0 − $47,025 $0 − $47,025 $0 − $63,000 $0 − $3,150
15% $94,051 − $583,750 $47,026 − $291,850 $47,026 − $518,900 $63,001 − $551,350 $3,151 − $15,450
20% $583,751+ $291,851+ $518,901+ $551,351+ $15,451+
*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included
in taxable income last for this purpose).
EXHIBIT 6-11 Standard Deduction Amounts*
2023 Amounts
Filing Status Basic Standard Deduction Additional Standard Deduction for Age and/or Blindness at End of year
Married filing jointly/Qualifying surviving spouse $ 27,700 $ 1,500
Head of household 20,800 1,850
Single 13,850 1,850
Married filing separately 13,850 1,500
2024 Amounts
Filing Status Basic Standard Deduction Additional Standard Deduction for Age and/or Blindness at End of year
Married filing jointly/Qualifying surviving spouse $ 29,200 $ 1,550
Head of household 21,900 1,950
Single 14,600 1,950
Married filing separately 14,600 1,550
*
For individuals claimed as a dependent on another return, the 2024 standard deduction is the greater of (1) $1,300 or (2) $450 plus earned income not to exceed the standard
deduction amount of those who are not dependents.
Estates and Trusts
If taxable income is over: But not over: The tax is:
$0 $ 3,100 10% of taxable income
$ 3,100 $ 11,150 $310 plus 24% of the excess over $ 3,100
$ 11,150 $ 15,200 $2,242 plus 35% of the excess over $11,150
$ 15,200 $3,659.50 plus 37% of the excess over $15,200
EXHIBIT 8-9 Child and Dependent Care Credit Percentage
, If AGI is over But not over Then the percentage is
$0 $ 15,000 35%
15,000 17,000 34
17,000 19,000 33
19,000 21,000 32
21,000 23,000 31
23,000 25,000 30
25,000 27,000 29
27,000 29,000 28
29,000 31,000 27
31,000 33,000 26
33,000 35,000 25
35,000 37,000 24
37,000 39,000 23
39,000 41,000 22
41,000 43,000 21
43,000 No limit 20
Source: §21.
EXHIBIT 8-10 2024 Earned Income Credit Table
(4) Credit Phase-Out for AGI (or No Credit When AGI (or earned
Qualifying (1) Maximum Earned (3) Maximum earned income if greater) over (5) Phase-Out income if greater) Equals or
Children Income Eligible for Credit (2) Credit % Credit (1) ×(2) This Amount Percentage Exceeds This Amount (4) + [(3)/(5)]
Married taxpayers filing joint returns
0 $ 8,260 7.65% $ 632 $17,250 7.65% $25,511
1 12,390 34 4,213 29,640 15.98 56,004
2 17,400 40 6,960 29,640 21.06 62,688
3+ 17,400 45 7,830 29,640 21.06 66,819
All taxpayers except married taxpayers filing joint returns
0 $ 8,260 7.65% $632 $10,330 7.65% $18,591
1 12,390 34 4,213 22,720 15.98 49,084
2 17,400 40 6,960 22,720 21.06 55,768
3+ 17,400 45 7,830 22,720 21.06 $59,899
Source: Rev. Proc. 2023-34 and §32.
EXHIBIT 8-5 2024 AMT Exemptions
Phase-Out Begins at This Phase-Out Complete for
Filing Status Exemption Level of AMTI This Level of AMTI
Married filing jointly $133,300 $1,218,700 $1,751,900
Married filing separately 66,650 609,350 875,950
Head of household and single 85,700 609,350 952,150
, This question contains tables that students will need to reference in certain questions in this
chapter, and is intended for use with TestBuilder/print-based tests only. If you are creating a
Connect-based test, you do not need to assign this question as the individual questions on
Connect will provide students with hyperlinks to the corresponding tables.
2. Award: 10.00 points
Both the width (or range) of the tax brackets (the amount of income taxed at a particular rate) in the tax rate schedules and the range of the tax rates in the tax rate schedules (the
difference between the lowest tax rate and the highest tax rate) vary by filing status.
True
False
While each filing status has its own tax rate schedule, all tax rate schedules consist of tax brackets taxed at 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and
37 percent. However, the width or range of income within each bracket varies by filing status.
References
True / False Difficulty: 2 Medium Learning Objective: 08-01 Determine a taxpayer's regular tax liability.
