Answer:
If he files as a head of household, he would have to pay less percentage of tax.
Step-by-step explanation:
To determine:
To compare the taxes of Joshua Smith's income if he files as single to the amount due if he files as head of household.
Information Fetching and Solution Steps:
As Joshua Smith's income $56,500.
Looking at the table,
If he files as single,
- then his tax dues lie into the range of 28,400 to 68,799.99 gross taxable Earning, E. So, his tax dues would be 0.25E - 3,190.
If he files as head of household,
- then his tax dues lie into the range of 38, 050 to 98,249.99 gross taxable Earning, E. So, his tax dues would be 0.25E - 4,305.
Lets compare the extreme values of the intervals for both the situations i.e. as a single and as a head of house.
AS A SINGLE
For 68,799.99 gross taxable Earning as a single, the tax dues would be 3,190, which is approximately 4.64% of 68799.99.
AS A HEAD OF HOUSEHOLD
For 98249.99 gross taxable Earning as a head of house, the tax dues would be 4,305, which is approximately 4.38% of 98249.99.
Therefore, it is clear from the above observations and calculations, if he files as a head of household, he would have to pay less percentage of tax.
Keywords: tax, percentage
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