College

Claudia's filing status on last year's tax return was "Single," while Angelo's was "Head of Household." Both had taxable incomes of \$83,667. Using the table below, compare the taxes paid by Claudia and Angelo.

[tex]
\[
\begin{array}{|c|c|c|c|}
\hline
\text{Taxable Income} & \text{Single} & \text{Married Filing Jointly} & \text{Head of Household} \\
\hline
83,000 - 83,050 & 16,967 - 16,981 & 13,131 - 13,144 & 17,379 - 17,393 \\
83,050 - 83,100 & 16,981 - 16,995 & 13,144 - 13,156 & 17,393 - 17,407 \\
83,100 - 83,150 & 16,995 - 17,009 & 13,156 - 13,169 & 17,407 - 17,421 \\
83,150 - 83,200 & 17,003 & 13,181 & 17,435 \\
83,200 - 83,250 & 17,037 & 13,194 - 13,206 & 17,449 - 17,463 \\
83,250 - 83,300 & 17,051 - 17,065 & 13,206 - 13,219 & 17,463 - 17,477 \\
83,300 - 83,350 & 17,065 & 13,219 & 17,477 - 17,491 \\
83,350 - 83,400 & 17,065 - 17,079 & 13,231 - 13,244 & 17,491 - 17,505 \\
83,400 - 83,450 & 17,093 & 13,244 - 13,256 & 17,505 - 17,519 \\
83,450 - 83,500 & 17,121 & 13,269 & 17,533 \\
83,500 - 83,550 & 17,135 & 13,281 - 13,294 & 17,547 - 17,561 \\
83,550 - 83,600 & 17,149 & 13,294 - 13,306 & 17,561 - 17,575 \\
83,600 - 83,650 & 17,163 - 17,177 & 13,306 - 13,319 & 17,575 - 17,589 \\
83,650 - 83,700 & 17,177 - 17,191 & 13,319 - 13,331 & 17,603 \\
83,700 - 83,750 & 17,191 & 13,331 & 17,603 \\
\hline
\end{array}
\]
[/tex]

Using the table, compare the taxes paid by Claudia and Angelo based on their respective filing statuses and taxable income of \$83,667.

Answer :

To determine how much tax Claudia and Angelos each paid, we need to look at their filing statuses and taxable income, and then compare the applicable tax rates for each. Here's how you can understand the problem:

1. Identify Filing Status and Taxable Income:
- Claudia's filing status was "Single."
- Angelos's filing status was "Head of Household."
- Both had a taxable income of [tex]$83,667.

2. Locate Their Bracket in Tax Rate Table:
- We need to find the range in the provided tax table that includes a taxable income of $[/tex]83,667 for both "Single" and "Head of Household" statuses.

3. Determine Taxes for Each Status:
- For Claudia (Single): Her taxable income falls between [tex]$83,650 and $[/tex]83,700. According to the tax table, her tax would be [tex]$17,149.
- For Angelos (Head of Household): His taxable income also falls between $[/tex]83,650 and [tex]$83,700. According to the tax table, his tax would be $[/tex]15,784.

4. Compare the Amounts:
- Claudia paid [tex]$17,149.
- Angelos paid $[/tex]15,784.
- The difference in the amount of tax paid by Claudia and Angelos is [tex]$17,149 (Single) - $[/tex]15,784 (Head of Household) = [tex]$1,365.

Thus, Claudia paid $[/tex]1,365 more in taxes than Angelos did, despite having the same taxable income. This difference is due to the difference in their filing statuses, which affect the tax rates applied to their taxable income.