1. Calculate your total tax liability under the 2013 federal income tax structure, assuming your income is $75,000. Assume you are single and using the personal exemption of $3,900 and the standard deduction of $6,100. Show your work.

2013 Tax Schedule

Taxable Income Rate

$0-$8925 10%

$8950-$36250 15%

$36250-$87,850 25%

$87,850-$183,250 28%

$183,250-$398,350 33%

$398,250-$400,000 35%

$400,000 and up 39.60%

2. Calculate your effective tax rate. Show your work.

3. You have an opportunity to do some extra work that will pay you $5,000. Determine your marginal tax rate for the extra compensation.