Question
Darren’s taxable income is
. He is filing as head of
household, and he has already paid
in federal taxes.
? What will he receive or pay after he figures his taxes for the year?
household, and he has already paid
? What will he receive or pay after he figures his taxes for the year?
Ask by Klein Wright. in the United States
Jan 30,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
Darren will receive a refund of approximately $462 after filing his taxes for the year.
Solution
To determine whether Darren will receive a refund or owe additional taxes, we’ll calculate his total federal tax liability based on his taxable income and filing status, then compare it to the taxes he’s already paid.
1. Understand Darren’s Information:
- Taxable Income: $27,102
- Filing Status: Head of Household
- Federal Taxes Already Paid: $3,400
2. 2023 Federal Tax Brackets for Head of Household:
For the 2023 tax year, the IRS tax brackets for Head of Household are approximately:
- 10% on income $0 to $15,700
- 12% on income $15,701 to $59,850
- (Higher brackets exist, but they’re not applicable here.)
3. Calculate Darren’s Total Tax Liability:
-
First Bracket (10%):
- Amount: $15,700
- Tax: $15,700 × 10% = $1,570
-
Second Bracket (12%):
- Amount: $27,102 (Total Income) - $15,700 (First Bracket) = $11,402
- Tax: $11,402 × 12% = $1,368.24
-
Total Federal Tax Liability:
- $1,570 (First Bracket) + $1,368.24 (Second Bracket) = $2,938.24
4. Compare Tax Liability to Taxes Already Paid:
-
Taxes Paid: $3,400
-
Total Tax Liability: $2,938.24
-
Refund or Amount Owed:
- $3,400 (Paid) - $2,938.24 (Liability) = $461.76
5. Conclusion:
Darren has overpaid his federal taxes by approximately $462. Therefore, he will receive a refund of $462 after filing his taxes for the year.
Note: This calculation is based solely on taxable income and standard tax rates. Other factors such as tax credits, deductions, or additional income sources can affect the final tax outcome.
Answered by UpStudy AI and reviewed by a Professional Tutor
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Bonus Knowledge
Darren’s tax liability can be calculated using the tax brackets for head of household for the corresponding tax year. As of 2023, the tax rate for income up to $14,650 is 10%, and for income between $14,651 and $55,900, it is 12%. Therefore, for his taxable income of $27,102, Darren would owe about $2,703 in federal taxes. Since he has already paid $3,400, he will receive a refund of approximately $697.
Darren can also benefit from tax credits, such as the Earned Income Tax Credit (EITC) or the Child Tax Credit if eligible. This means his overall tax situation might improve further, potentially increasing his refund or reducing his tax liability even more. It’s a great reason for him to investigate any credits he might qualify for!