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Julie's taxable income is [tex]$50,000. The table 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?

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

A. [tex]$5,332.25
B. $[/tex]12,500.00
C. [tex]$14,350.85
D. $[/tex]9,552.50
E. $8,293.75



Answer :

GinnyAnswer
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