QuestionIf the federal government used the progressive tax rate below for individual income tax, calculate the federal income tax owed on a salary. \begin{tabular}{|c|c|} \hline Standard Deduction & \12,200 \\ \hline Income Range (\$) & \begin{tabular}{l} Progressive \\ Tax Rate \end{tabular} \\ \hline 0 . \quad 9,700 & 10 \% \\ \hline 9,701 - 39,475 & 12 \% \\ \hline 39,476 - 84,200 & 22 \% \\ \hline 84,201-160,275 & 24 \% \\ \hline 160,276+ & 32 \%$ \\ \hline \end{tabular}
Studdy Solution
STEP 1
1. The individual salary is \$57,600.
2. The standard deduction is \$12,200.
3. The taxable income needs to be calculated by subtracting the standard deduction from the salary.
4. The progressive tax rates apply to different portions of the taxable income as specified in the table.
STEP 2
1. Calculate the taxable income.
2. Apply the progressive tax rates to the appropriate portions of the taxable income.
3. Sum the taxes calculated from each portion to get the total federal income tax owed.
STEP 3
Calculate the taxable income by subtracting the standard deduction from the salary.
STEP 4
Determine the tax for the first portion of the income range () at .
STEP 5
Determine the tax for the second portion of the income range (\12\%$.
STEP 6
Determine the tax for the third portion of the income range (\22\%$.
STEP 7
Sum the taxes from each portion to get the total federal income tax owed.
The total federal income tax owed on a \$57,600 salary is \$5,846.50.
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