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Julie's taxable income is [tex]$50,000. The table below gives the federal tax brackets for different levels of taxable income. Julie pays a progressive tax. How much will she pay in income tax this year?

\begin{tabular}{|c|c|}
\hline Tax Rate & Taxable Income Level \\
\hline $[/tex]10\%[tex]$ & \$[/tex]0 - \[tex]$9,225 \\
\hline $[/tex]15\%[tex]$ & \$[/tex]9,226 - \[tex]$37,450 \\
\hline $[/tex]25\%[tex]$ & \$[/tex]37,451 - \[tex]$90,750 \\
\hline $[/tex]28\%[tex]$ & \$[/tex]90,751 - \[tex]$189,300 \\
\hline $[/tex]33\%[tex]$ & \$[/tex]189,301 - \[tex]$411,500 \\
\hline $[/tex]35\%[tex]$ & \$[/tex]411,501 - \[tex]$413,200 \\
\hline $[/tex]39.60\%[tex]$ & above \$[/tex]413,200 \\
\hline
\end{tabular}

A. \[tex]$9,552.50

B. \$[/tex]5,332.25

C. \[tex]$12,500.00

D. \$[/tex]14,350.85


Sagot :

To determine how much income tax Julie will pay on her [tex]$\$[/tex]50,000[tex]$ income using the federal tax brackets, let's go through each bracket step by step and calculate the tax she owes for each portion of her income. 1. First Bracket: - Tax Rate: 10% - Income Range: $[/tex]\[tex]$0 - \$[/tex]9,225[tex]$ - Julie's income within this bracket is $[/tex]\[tex]$9,225$[/tex].
- Tax Calculation: [tex]$10 \%$[/tex] of [tex]$\$[/tex]9,225[tex]$ = $[/tex]0.10 \times 9,225 = \[tex]$922.50$[/tex]

2. Second Bracket:
- Tax Rate: 15%
- Income Range: [tex]$\$[/tex]9,226 - \[tex]$37,450$[/tex]
- Julie's income within this bracket is [tex]$\$[/tex]37,450 - \[tex]$9,225 = \$[/tex]28,225[tex]$. - Tax Calculation: $[/tex]15 \%[tex]$ of $[/tex]\[tex]$28,225$[/tex] = [tex]$0.15 \times 28,225 = \$[/tex]4,233.75[tex]$ 3. Third Bracket: - Tax Rate: 25% - Income Range: $[/tex]\[tex]$37,451 - \$[/tex]90,750[tex]$ - Julie's income within this bracket is $[/tex]\[tex]$50,000 - \$[/tex]37,450 = \[tex]$12,550$[/tex].
- Tax Calculation: [tex]$25 \%$[/tex] of [tex]$\$[/tex]12,550[tex]$ = $[/tex]0.25 \times 12,550 = \[tex]$3,137.50$[/tex]

Adding it all together:

[tex]\[ \text{Total Tax} = \$922.50 (\text{from first bracket}) + \$4,233.75 (\text{from second bracket}) + \$3,137.50 (\text{from third bracket}) \][/tex]

[tex]\[ \text{Total Tax} = \$922.50 + \$4,233.75 + \$3,137.50 = \$8,293.75 \][/tex]

Therefore, the amount of income tax Julie will pay this year is \[tex]$8,293.75. The closest answer to our calculations is: A. \$[/tex]8,293.85
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