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IRS
Background:
Federal income tax rates can be calculated using tax rate schedules. The following are tax rates for two out of the four categories used by the IRS in 2001:
Schedule X - Single
If your taxable income is:
over - |
but not over - |
your tax is |
of the amount over - |
$ 0 |
$ 27,050 |
15 % |
$ 0 |
27,050 |
65,550 |
$ 4,057.50 + 27.5 % |
27,050 |
65,550 |
136,750 |
$ 14,645.00 + 30.5 % |
65,550 |
136,750 |
297,350 |
$ 36,361.00 + 35.5 % |
136,750 |
297,350 |
--------- |
$ 93,374.00 + 39.1 % |
297,350 |
Schedule Y-1 - Married filing jointly
If your taxable income is:
over - |
but not over - |
your tax is |
of the amount over - |
$ 0 |
$ 45,200 |
15 % |
$ 0 |
45,200 |
109,250 |
$ 6,780.00 + 27.5 % |
45,200 |
109,250 |
166,500 |
$ 24,393.75 + 30.5 % |
109,250 |
166,500 |
297,350 |
$ 41,855.00 + 35.5 % |
166,500 |
297,350 |
--------- |
$ 88,306.00 + 39.1 % |
297,350 |
To test your understanding, follow this example of a single person with taxable income of $68,000:
Tax is $14,645.00 + 0.305*(68000-65550) = $14,645.00 + $747.25 = $15,392.25 |
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Assignment:
- One of the biggest mistakes that beginning programmers tend to make is to attempt solving the problem within their code before they really understand how to work the problem. Use the following values and solve each of them before you begin to write your program out.
| a. |
$50,000 |
Married |
__________ |
| b. |
$25,000 |
Single |
__________ |
| c. |
$300,000 |
Married |
__________ |
| d. |
$170,000 |
Single |
__________ |
| e. |
$30,000 |
Married |
__________ |
| f. |
$500,000 |
Single |
__________ |
| g. |
$170,000 |
Married |
__________ |
| h. |
$45,000 |
Single |
__________ |
| i. |
$130,000 |
Married |
__________ |
| j. |
$120,000 |
Single |
__________ |
Write a class that:
- Prompts the user for the following information:
Filing status: Single or Married (entered as 1 for Single and 2 for Married)
Taxable income
- Calculates and prints:
Filing status
Taxable income
Federal tax
- Example run:
Enter marital status (1=single, 2=married): 1
Enter taxable income: $ 35125
Your Federal tax = $ 6,278.13
- Use these values for your run output:
Single, $15,500
Single, $100,000
Single, $ 480,000
Married, $50,000
Married, $125,000
Married, $ 400,000
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