To calculate the federal income tax owed on a [tex]$\$[/tex]57,600[tex]$ salary using the provided progressive tax rates and standard deduction, follow these steps:
1. Determine Taxable Income:
- Subtract the standard deduction from the salary.
- Taxable Income = Salary - Standard Deduction
- Taxable Income = $[/tex]\[tex]$57,600$[/tex] - [tex]$\$[/tex]12,200[tex]$ = $[/tex]\[tex]$45,400$[/tex]
2. Apply Progressive Tax Rates:
Income Bracket 1: [tex]$0 - $[/tex]9,700
- Tax rate: 10%
- Taxable amount in this bracket: [tex]$\$[/tex]9,700[tex]$
- Tax: $[/tex]9,700 \times 0.10 = \[tex]$970$[/tex]
Income Bracket 2: [tex]$9,701 - $[/tex]39,475
- Tax rate: 12%
- Taxable amount in this bracket: [tex]$\$[/tex]39,475 - \[tex]$9,700 = \$[/tex]29,775[tex]$
- Tax: $[/tex]29,775 \times 0.12 = \[tex]$3,573$[/tex]
Income Bracket 3: [tex]$39,476 - $[/tex]84,200
- Tax rate: 22%
- Taxable amount in this bracket: [tex]$\$[/tex]45,400 - \[tex]$39,475 = \$[/tex]5,925[tex]$
- Tax: $[/tex]5,925 \times 0.22 = \[tex]$1,303.5$[/tex]
3. Sum Up Taxes for Each Bracket:
- Total Tax = Tax from Bracket 1 + Tax from Bracket 2 + Tax from Bracket 3
- Total Tax = [tex]$\$[/tex]970 + \[tex]$3,573 + \$[/tex]1,303.5 = \[tex]$5,846.5$[/tex]
Therefore, the federal income tax owed on a [tex]$\$[/tex]57,600[tex]$ salary is \(\$[/tex]5,846.5\).
