Use the above tax rate table to calculate how much money is due to Jacinta's husband or due to SARS

Question

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here's the solution to Question 1.2.1: 1.2.1 Step 1: Determine the correct tax bracket for Jacinta's husband's annual taxable income. Jacinta's husband' has an annual taxable income of R 386 000. This falls into the bracket: R 305 851 – R 423 300. The tax rate for this bracket is R 63 853 + 31% of taxable income above R 305 850. Step 2: Calculate the gross tax payable. Gross Tax = 63853 + 0.31 × (386000 − 305850); Gross Tax = 63853 + 0.31 × 80150; Gross Tax = 63853 + 24846.50; Gross Tax = R 88699.50 Step 3: Determine the applicable tax rebate. Jacinta's husband is 46 years old, which is "less than 65 years". The primary tax rebate is R 14 220. Step 4: Calculate the net tax payable (tax liability). Net Tax Payable = Gross Tax − Tax Rebate; Net Tax Payable = 88699.50 − 14220; Net Tax Payable = R 74479.50 Step 5: Calculate the total tax already deducted. Total Tax Deducted = Monthly Deduction × 12; Total Tax Deducted = 6241 × 12; Total Tax Deducted = R 74892 Step 6: Calculate the amount due to or from SARS. Amount Due = Net Tax Payable − Total Tax Deducted; Amount Due = 74479.50 − 74892; Amount Due = −R 412.50 Since the result is negative, it means SARS owes Jacinta's husband money. The amount due to Jacinta's husband from SARS is R 412.50.

Use the above tax rate table to calculate how much money is due to Jacinta's husband or due to SARS

Answer

Step-by-step solution

Determine the correct tax bracket for Jacinta's husband's annual taxable income.

Calculate the gross tax payable.

Determine the applicable tax rebate.

Calculate the net tax payable (tax liability).

Calculate the total tax already deducted.

Calculate the amount due to or from SARS.

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