To determine how much Julie will pay in income tax with a taxable income of \[tex]$50,000, we need to apply the tax rates for each corresponding income bracket progressively until her total taxable income is covered.
Let’s break down the calculations step by step through each tax bracket:
1. First Bracket: \(\$[/tex]0 - \[tex]$9,225\) at \(10\%\)
- Taxable income in this bracket: \(\$[/tex]9,225\)
- Tax for this bracket: [tex]\(\$9,225 \times 0.10 = \$922.50\)[/tex]
2. Second Bracket: [tex]\(\$9,226 - \$37,450\)[/tex] at [tex]\(15\%\)[/tex]
- Taxable income in this bracket: [tex]\(\$37,450 - \$9,225 = \$28,225\)[/tex]
- Tax for this bracket: [tex]\(\$28,225 \times 0.15 = \$4,233.75\)[/tex]
3. Third Bracket: [tex]\(\$37,451 - \$90,750\)[/tex] at [tex]\(25\%\)[/tex]
- Julie’s taxable income reaches \[tex]$50,000, so we only account for up to \$[/tex]50,000.
- Taxable income in this bracket: [tex]\(\$50,000 - \$37,450 = \$12,550\)[/tex]
- Tax for this bracket: [tex]\(\$12,550 \times 0.25 = \$3,137.50\)[/tex]
Now, we sum the tax calculated for each applicable bracket:
- Tax from the first bracket: [tex]\(\$922.50\)[/tex]
- Tax from the second bracket: [tex]\(\$4,233.75\)[/tex]
- Tax from the third bracket: [tex]\(\$3,137.50\)[/tex]
Total tax payable is:
[tex]\[
\$922.50 + \$4,233.75 + \$3,137.50 = \$8,293.75
\][/tex]
Therefore, Julie will pay [tex]\(\$8,293.75\)[/tex] in income tax this year. The correct answer is:
D. [tex]\(\$8,293.75\)[/tex]
