If the federal government used the progressive tax rate below for individual income tax, calculate the federal income tax owed on a [tex] \$60,000 [/tex] salary.

\begin{tabular}{|r|c|}
\hline
\text{Standard Deduction} & $\[tex]$12,200$[/tex] \\
\hline
\text{Income Range (\[tex]$)} & \text{Progressive Tax Rate} \\
\hline
$[/tex]0-9,700[tex]$ & $[/tex]10\%[tex]$ \\
\hline
$[/tex]9,701-39,475[tex]$ & $[/tex]12\%[tex]$ \\
\hline
$[/tex]39,476-84,200[tex]$ & $[/tex]22\%[tex]$ \\
\hline
$[/tex]84,201-160,275[tex]$ & $[/tex]24\%[tex]$ \\
\hline
$[/tex]160,276+[tex]$ & $[/tex]32\%[tex]$ \\
\hline
\end{tabular}

\[
\text{Tax} = \$[/tex][?]
\]



Answer :

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.