Background:
Federal income tax rates can be calculated using tax rate schedules. The following are tax rates for two out of the four categories used by the IRS in 2001:
Schedule X - Single
If your taxable income is:
over - but not over - your tax is of the amount over -
$0 $27,050 15% $0
27,050 65,550 $4,057.50 + 27.5% 27,050
65,550 136,750 $14,645.00 + 30.5% 65,550
136,750 297,350 $36,361.00 + 35.5% 136,750
297,350 --------- $93,374.00 + 39.1% 297,350
Schedule Y-1 - Married filing jointly
If your taxable income is:
over - but not over - your tax is of the amount over -
$0 $45,200 15% $0
45,200 109,250 $6,780.00 + 27.5% 45,200
109,250 166,500 $24,393.75 + 30.5% 109,250
166,500 297,350 $41,855.00 + 35.5% 166,500
297,350 --------- $88,306.00 + 39.1% 297,350
To test your understanding, follow this example of a single person with taxable income of $68,000:
Tax is 14645 + 0.305*(68000-65550) = 14645+745.25 = $15392.25
Assignment:
Write a program that:
Prompts the user for the following information:
Filing status : single or married
Taxable income
Calculates and prints
Filing status
Taxable income
Federal tax
Your program should be written using proper modular design and parameter passing. Use the handout H.A.8.3 as a model. Your instructor will give you more guidelines if you have questions.
Example run output:
Single
Taxable income = $ 35,125
Federal tax = $ 6,630.50
Instructions:
Complete the working program to the screen and verify the calculations. Use the values given above
Print your source code first, then the run output below it.
Use these values for your run output:
Single, $15,500
Single, $100,000
Married, $50,000
Married, $125,000