If the federal government used the progressive tax rate below for individual income tax, calculate the federal income tax owed on a [tex]$\$49,500[tex]$[/tex] salary.

\begin{tabular}{|r|c|}
\hline
Standard Deduction & \begin{tabular}{c}
$[/tex]\[tex]$12,200$[/tex] \\
\end{tabular} \\
\hline
Income Range & 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]$84,201+$[/tex] & [tex]$32\%$[/tex] \\
\hline
\end{tabular}

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



Answer :

To calculate the federal income tax owed on a \[tex]$49,500 salary using the given progressive tax rates, follow these steps: 1. Calculate Taxable Income: \[ \text{Gross salary} = 49,500 \] \[ \text{Standard deduction} = 12,200 \] \[ \text{Taxable income} = \text{Gross salary} - \text{Standard deduction} = 49,500 - 12,200 = 37,300 \] 2. Apply Progressive Tax Rates: The taxable income of \$[/tex]37,300 falls into different segments of the tax brackets provided. We need to break down the taxable income within each range and apply corresponding tax rates.

- First Bracket (up to \[tex]$9,700): \[ \text{Tax} = 9,700 \times 10\% = 9,700 \times 0.10 = 970 \] - Second Bracket (\$[/tex]9,701 to \[tex]$39,475): Since \$[/tex]37,300 is within this range but below the upper limit (\[tex]$39,475), we should calculate the tax only for the portion that exceeds \$[/tex]9,700:
[tex]\[ \text{Amount in this bracket} = 37,300 - 9,700 = 27,600 \][/tex]
[tex]\[ \text{Tax} = 27,600 \times 12\% = 27,600 \times 0.12 = 3,312 \][/tex]

3. Total Tax Calculation:
Add up the tax amounts from each bracket:
[tex]\[ \text{Total tax} = 970 + 3,312 = 4,282 \][/tex]

Therefore, the federal income tax owed on a \[tex]$49,500 salary is \$[/tex]4,282.