To determine how much income will be left over after paying federal income tax, we need to follow these steps:
1. Identify the Taxable Income:
The taxable income given is [tex]$31,850.
2. Determine the Appropriate Tax Bracket:
Based on the provided table, the taxable income $[/tex]31,850 falls into the second tax bracket: [tex]$8,350 to $[/tex]33,950.
3. Calculate the Tax:
The components of the second tax bracket are as follows:
- The base tax for the second bracket from [tex]$8,350 up to $[/tex]33,950 is [tex]$835.00.
- The tax rate for the second bracket is 15%.
- The amount over the lower limit of $[/tex]8,350 must be calculated to determine the taxable portion within the bracket.
4. Compute Taxable Amount within the Bracket:
The taxable amount within the bracket (from [tex]$8,350 to $[/tex]31,850) is as follows:
[tex]\[
31,850 - 8,350 = 23,500
\][/tex]
5. Calculate the Tax on This Portion:
The tax on the [tex]$23,500 within this bracket at the 15% rate is:
\[
23,500 \times 0.15 = 3,525
\]
6. Calculate Total Tax:
The total tax is the sum of the base tax of $[/tex]835 plus the calculated tax within the bracket:
[tex]\[
835 + 3,525 = 4,360
\][/tex]
7. Calculate the Income Left After Tax:
Subtract the total tax from the taxable income to find the remaining income:
[tex]\[
31,850 - 4,360 = 27,490
\][/tex]
So, the amount of income that will be left over after paying the federal income tax is:
[tex]\[
\boxed{27,490}
\][/tex]
Therefore, the correct answer is:
B. [tex]$\$[/tex] 27,490.00$
