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Lesson 8 - Structured Programming, Control Structures, if-else Statements, Pseudocode
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L.A.8.1 - IRS page 15 of 15

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:

  1. Write a program that:

    1. Prompts the user for the following information:

      Filing status : single or married
      Taxable income
    2. Calculates and prints

      Filing status
      Taxable income
      Federal tax

  2. 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.

  3. Example run output:

    Single
    Taxable income = $ 35,125
    Federal tax = $ 6,630.50

Instructions:

  1. Complete the working program to the screen and verify the calculations. Use the values given above

  2. Print your source code first, then the run output below it.

  3. Use these values for your run output:

    Single, $15,500
    
    Single, $100,000
    
    Married, $50,000
    
    Married, $125,000

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