Tax Rate Schedule

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  • Bees Knees
    Senior Member
    • May 2005
    • 5456

    #1

    Tax Rate Schedule

    Why does IRS use such a ridiculous method on their tax rate schedules?

    Single taxpayer with $200,000 of taxable income. Under the IRS tax rate schedule on page 82 of the 1040 instructions, you calculate it as follows:

    1) 200,000 minus 150,150 = 49,850
    2) 49,850 X 33% = 16,450.50
    3) 16,450.50 + 36,548.50 = 52,999

    Under the tax rate schedule on the front of TTB and QF, you calculate it as follows:

    1) 200,000 X 33% = 66,000
    2) 66,000 minus 13,001 = 52,999

    Isn’t the IRS way kind of amateurish?
  • Gary
    Senior Member
    • Jul 2005
    • 435

    #2
    What a silly question. It's the IRS!!! What else would you expect? Simplification?

    Gary

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    • Bees Knees
      Senior Member
      • May 2005
      • 5456

      #3
      It is not just the IRS who prefers complexity. Someone from the “other” board was criticizing this faster method as “amateur.”

      Comment

      • ED SMITH
        Senior Member
        • Sep 2005
        • 255

        #4
        There should be more amateurs.

        BTW, also uses the simpler method.

        Ed

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