Lacy is a single taxpayer. In 2016, her taxable income is
$40,000. What is her tax liability in each of the following
alternative situations?

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Question: Lacy is a single taxpayer. In 2016, her taxable income is $40,000. What is her tax liability in e…
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Question: Lacy is a single taxpayer. In 2016, her taxable income is$40,000. What is her tax liability in e...

Question: Lacy is a single taxpayer. In 2016, her taxable income is$40,000. What is her tax liability in e...

in b, Tax on preferentially
taxed income 150. In c, Tax on preferentially taxed income
352.50.

How can I calculate this? I do
not know how this schedule work.

Show transcribed image text b. Her $40,000 of taxable income includes taxable income includes $1,000 of qualified dividends. Lacy's total tax is S5,671.25. Description Amount Explanation S40,000 (1) Taxable income L0001 (2) Preferentially taxed income (3) Income taxed at ordinary rates 30,000 (1) (2) (4) Tax on income taxed at 5,521.25 (30,000-37,050) x 25% ordinary rates 5,183.75 (5) Tax on preferentially taxed 150 (2) x 15% Note that if (2) were ordinary income it would have been income taxed at 23% S5.67.25 Tax on taxable income c. Her $40,000 of taxable income includes ,000 of qualified dividends. Lacy's total tax is S5,138.75. Description Amount Explanation S40,000 (1) Taxable income 5.000 2) preferentially taxed income (3) Income taxed at ordinary rates 35,000 (I) (2) (4) Tax on income taxed at 4,780.25 (35,000-0,275) x 15% 027.50 ordinary rates (5) Tax on preferentially taxed 352.50 (37,050 35,000) x 0% (5,000 (37,050 35,000) x 15% income Tax on taxable income S5, 138.75 (4) 5)

b. Her $40,000 of taxable income includes $1,000 of qualified dividends. Lacy's total tax is S5,671.25. Description Amount Explanation S40,000 (1) Taxable income L0001 (2) Preferentially taxed income (3) Income taxed at ordinary rates 30,000 (1) (2) (4) Tax on income taxed at 5,521.25 (30,000-37,050) x 25% ordinary rates 5,183.75 (5) Tax on preferentially taxed 150 (2) x 15% Note that if (2) were ordinary income it would have been income taxed at 23% S5.67.25 Tax on taxable income c. Her $40,000 of taxable income includes $5,000 of qualified dividends. Lacy's total tax is S5,138.75. Description Amount Explanation S40,000 (1) Taxable income 5.000 2) preferentially taxed income (3) Income taxed at ordinary rates 35,000 (I) (2) (4) Tax on income taxed at 4,780.25 (35,000-0,275) x 15% 027.50 ordinary rates (5) Tax on preferentially taxed 352.50 (37,050 35,000) x 0% (5,000 (37,050 35,000) x 15% income Tax on taxable income S5, 138.75 (4) 5)

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