Joshua Smith's income was $56,500. Compare his taxes due if he files as single to the amount due if he files as head of household. Explain please.

Joshua Smiths income was 56500 Compare his taxes due if he files as single to the amount due if he files as head of household Explain please class=

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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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