To solve this problem, we can go through it step-by-step:
1. Understand the Tax Bracket Limits:
- The 10% tax bracket has been increased to [tex]$9,594. This means that income up to $[/tex]9,594 is taxed at 10%.
- Income above [tex]$9,594 will be taxed at 15%.
2. Given Income:
- The taxpayer's income is $[/tex]10,400.
3. Tax Calculation at 10%:
- Income within the 10% bracket: [tex]$9,594
4. Remaining Income:
- To find the portion of income that falls into the 15% tax bracket, we subtract the 10% bracket limit from the total income:
\( \text{Remaining Income} = \$[/tex]10,400 - \[tex]$9,594 \)
5. Compute the Remaining Income:
\( \text{Remaining Income} = \$[/tex]10,400 - \[tex]$9,594 = \$[/tex]806 \)
6. Conclusion:
- The remaining income of [tex]$806 is the portion that will be taxed at 15%.
So the answer to the question is:
a) $[/tex]806
