To calculate the federal income tax on a [tex]$60,000 salary using the given progressive tax rate and standard deduction, follow these steps:
1. Determine the Taxable Income:
\[
\text{Taxable Income} = \text{Income} - \text{Standard Deduction}
\]
Given:
\[
\text{Income} = \$[/tex]60,000
\]
[tex]\[
\text{Standard Deduction} = \$12,200
\][/tex]
[tex]\[
\text{Taxable Income} = \$60,000 - \$12,200 = \$47,800
\][/tex]
2. Calculate the Tax for Each Bracket up to the Taxable Income:
- First Bracket ([tex]$0 - $[/tex]9,700):
[tex]\[
\text{Amount} = \$9,700
\][/tex]
[tex]\[
\text{Rate} = 10\%
\][/tex]
[tex]\[
\text{Tax} = \$9,700 \times 0.10 = \$970
\][/tex]
- Second Bracket ([tex]$9,701 - $[/tex]39,475):
[tex]\[
\text{Amount} = \$39,475 - \$9,700 = \$29,775
\][/tex]
[tex]\[
\text{Rate} = 12\%
\][/tex]
[tex]\[
\text{Tax} = \$29,775 \times 0.12 = \$3,573
\][/tex]
- Third Bracket ([tex]$39,476 - $[/tex]84,200):
Only part of this bracket is used since the taxable income is [tex]$47,800.
\[
\text{Amount} = \$[/tex]47,800 - \[tex]$39,475 = \$[/tex]8,325
\]
[tex]\[
\text{Rate} = 22\%
\][/tex]
[tex]\[
\text{Tax} = \$8,325 \times 0.22 = \$1,831.50
\][/tex]
3. Sum the Taxes from Each Bracket:
[tex]\[
\text{Total Tax} = \$970 + \$3,573 + \$1,831.50 = \$6,374.50
\][/tex]
Thus, the federal income tax owed on a [tex]$\$[/tex]60,000[tex]$ salary is $[/tex]6,374.50.
