Priscilla has an income of \[tex]$122,300.00 and is married filing jointly.

\begin{tabular}{|c|c|}
\hline If Taxable Income Is between: & Married Filing Jointly \\
\hline\$[/tex]0.00-\[tex]$19,400.00 & \multicolumn{1}{|c|}{Then the Tax Due Is:} \\
\hline\$[/tex]19,401.00-\[tex]$78,950.00 & \$[/tex]1,940.00 + 12\% of the amount over \[tex]$19,400.00 \\
\hline\$[/tex]78,951.00-\[tex]$168,400.00 & \$[/tex]9,086.00 + 22\% of the amount over \[tex]$78,950.00 \\
\hline\$[/tex]168,401.00-\[tex]$321,450.00 & \$[/tex]28,765.00 + 24\% of the amount over \[tex]$168,400.00 \\
\hline\$[/tex]321,451.00-\[tex]$408,200.00 & \$[/tex]65,497.00 + 32\% of the amount over \[tex]$321,450.00 \\
\hline\$[/tex]408,201.00-\[tex]$612,350.00 & \$[/tex]93,257.00 + 35\% of the amount over \[tex]$408,200.00 \\
\hline\$[/tex]612,351.00+ & \[tex]$164,709.50 + 37\% of the amount over \$[/tex]612,350.00 \\
\hline
\end{tabular}

How much federal income tax does she owe?
Enter your answer as a dollar value, such as: 3456.78



Answer :

To determine Priscilla's federal income tax, we'll use the given tax brackets for married couples filing jointly and calculate the tax step-by-step according to her income of [tex]$122,300.00. 1. Identify the applicable tax bracket: - Priscilla's income of $[/tex]122,300 falls within the range of \[tex]$78,951.00 to \$[/tex]168,400.00.

2. Calculate the tax due for each portion of her income according to the brackets:

- For the first \[tex]$19,400.00, the tax rate is 10%: \[ 19,400 \times 0.10 = 1,940.00 \] - For the next portion of her income, from \$[/tex]19,401.00 to \[tex]$78,950.00, the tax rate is 12%: \[ (78,950 - 19,400) \times 0.12 = 59,550 \times 0.12 = 7,146.00 \] - For the remaining portion of her income, from \$[/tex]78,951.00 to \[tex]$122,300.00, the tax rate is 22%: \[ (122,300 - 78,950) \times 0.22 = 43,350 \times 0.22 = 9,537.00 \] 3. Summing the tax calculated for each portion: - Tax for the first \$[/tex]19,400.00: \[tex]$1,940.00 - Tax for the portion between \$[/tex]19,401.00 and \[tex]$78,950.00: \$[/tex]7,146.00
- Tax for the portion between \[tex]$78,951.00 and \$[/tex]122,300.00: \[tex]$9,537.00 Total tax due: \[ 1,940.00 + 7,146.00 + 9,537.00 = 18,623.00 \] Therefore, the federal income tax that Priscilla owes is \$[/tex]18,623.00.