To determine how much Julie will pay in income tax for a taxable income of [tex]$50,000, we can calculate the tax progressively for each tax bracket.
### Step-by-Step Calculation
1. First Bracket: $[/tex]0 - [tex]$9,225 at 10%
- Income in this bracket: $[/tex]9,225
- Tax: [tex]$9,225 \times 0.10 = $[/tex]922.50
2. Second Bracket: [tex]$9,226 - $[/tex]37,450 at 15%
- Income in this bracket: [tex]$37,450 - $[/tex]9,225 = [tex]$28,225
- Tax: $[/tex]28,225 \times 0.15 = [tex]$4,233.75
3. Third Bracket: $[/tex]37,451 - [tex]$90,750 at 25%
- Income in this bracket: $[/tex]50,000 - [tex]$37,450 = $[/tex]12,550
- Tax: [tex]$12,550 \times 0.25 = $[/tex]3,137.50
Summing up the taxes from each bracket:
[tex]\[ \text{Total Tax} = \$ 922.50 + \$ 4,233.75 + \$ 3,137.50 = \$ 8,293.75 \][/tex]
From the calculations above, Julie will pay \[tex]$8,293.75 in income tax this year.
Correct Answer: E. \$[/tex] 8,293.75
