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Effect of tax credit versus tax exemption Explain and calculate the differences resulting from a...

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Effect of tax credit versus tax exemption Explain and calculate the differences resulting from a $1,500 tax credit versus a $1,500 tax deduction for a single taxpayer with $39,000 of pre-tax income. The standard deduction in 2018 was $12,000 for single. Note that personal exemptions were suspended for 2018. Use Exhibit 3.3 to determine the corresponding tax rate. Round the answers to the nearest cent Alter tax Income Tax Deduction) After tax Income Tax Credit) EXHIBIT 3.3 2018 Tax Rate Schedules Single Taxable income Tax Rate $0-$9,525 10 of taxable income $9.526-538,700 $952.50 plus 12% of the amount over $9.525 $38,701-582,500 $4,453.50 plus 2294 of the amount over $38.700 $82,501-$157,500 $14,089.50 plus 24% of the amount over $82,500 $157,501-5200,000 $32.089 50 plus 32 of the amount over $157,500 $200,001-$500,000 $45,689,50 plus 35% of the amount over $200,000 $500,001 or more $150,689,50 plus 37% of the amount over $500,000

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