Applied Mathematics: Tax Calculation for Married Filing Jointly

This assignment provides a comprehensive solution to a personal tax calculation problem. The solution begins with identifying the client's information, including filing status, gross income, adjustments, and deductions. It then proceeds to calculate FICA tax, considering Social Security and Medicare. The income tax calculation is detailed, outlining the adjusted gross income, taxable income, and the application of tax rates based on the 'Married filing jointly' status. The assignment calculates the total tax bill, including income tax and FICA, and determines the percentage of income owed as tax. The solution includes the application of relevant tax rates and provides a final calculation of the total tax liability. References are included to support the calculations and provide context for the tax laws applied.

APPLIED MATHEMATICS

Table of Contents
PART 1 Personal taxes...............................................................................................................1
Client’s information................................................................................................................1
Calculate Client’s FICA tax...................................................................................................1
Calculate Income tax..............................................................................................................1
Calculate total tax bill of the client along with what % of income owned as a tax................2
REFERENCES...........................................................................................................................3

PART 1 PERSONAL TAXES
Client’s information
Client name Mailory Griffith
Filling status Married filing jointly
Gross income 78600
Adjustments 4600
Deductible expenses 7729
Number of exemptions 5
Deductible expenses Deductible expense charged on rent of house of an individual
Mailory Griffith has spouse named John along with their five kids Ellie, Tatiana,
Lena, tori and Lauren on which she gets deduction from her income. Age of ellie is 4 years
old, Tatiana is 5 years old, Lena is 6 years old, toru is 7 years old and Lauren is 8 years old
Calculate Client’s FICA tax
Calculation of FICA
Social
security
12.4 of first $127200 of
wages
Medicare 2.9% on all wages
In the current case, Social security has not applicable in assessing the taxable income
of Maliory Griffith as their total salary is just $78600 instead of $127200.
Gross income 78600
Medicare levy@2.9% 2279.4
Total FCA 2279.4
Calculate Income tax
Particulars Amount
Gross income 78600
Less: adjustments to income 4600
Adjusted gross income 74000
Less: deductions 7729
Taxable income 66271
Tax rates
Rates Married filing jointly
10% Up to $18,650
1

15% $18,651 to $75,900
25% $75,901 to $153,100
28% $153,101 to $233,350
33% $233,351 to $416,700
35% $416,701 to $470,700
39.60% $470,701 or more
Mailory Griffith is taxed @15%
Tax@15% 9940.65
Less: tax credits 0
Total tax 9940.65
Less: payments 0
Amount owed 9940.65
Calculate total tax bill of the client along with what % of income owned as a tax
Calculate the percentage of income owed in tax
Particulars Amount
Taxable income 66271
Tax 9940.65
FCA 2279.4
total tax 12220.05
% of income owned as a tax 18%
2

REFERENCES
Braithwaite, V. ed., 2017. Taxing democracy: Understanding tax avoidance and evasion.
Routledge.
FICA rates, 2017. Available through: < http://www.moneychimp.com/features/fica.htm>
[Accessed on 22nd October 2017].
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