To determine how much Emilio will owe in federal income taxes with an income of \[tex]$118,600, let's break down the tax calculation step-by-step using the provided tax brackets for an individual taxpayer.
1. First Bracket (\$[/tex]0 - \[tex]$9,950):
\[
\text{Tax} = 10\% \text{ of } \$[/tex]9,950 = 0.10 \times 9950 = \[tex]$995
\]
2. Second Bracket (\$[/tex]9,951 - \[tex]$40,525):
\[
\text{Tax} = 995 + 12\% \text{ of the amount over } \$[/tex]9,950 = 995 + 0.12 \times (40525 - 9950) = 995 + 0.12 \times 30,575 = 995 + 3,669 = \[tex]$4,664
\]
3. Third Bracket (\$[/tex]40,526 - \[tex]$86,375):
\[
\text{Tax} = 4664 + 22\% \text{ of the amount over } \$[/tex]40,525 = 4664 + 0.22 \times (86375 - 40525) = 4664 + 0.22 \times 45,850 = 4664 + 10,087 = \[tex]$14,751
\]
4. Fourth Bracket (\$[/tex]86,376 - \[tex]$164,925):
\[
\text{Tax} = 14,751 + 24\% \text{ of the amount over } \$[/tex]86,375 = 14,751 + 0.24 \times (118600 - 86375) = 14,751 + 0.24 \times 32,225 = 14,751 + 7,733.25 = \[tex]$22,484.25
\]
Since Emilio's income is \$[/tex]118,600, which falls into the fourth bracket, we have calculated the federal income tax for the amount precisely as \[tex]$22,484.25. By rounding the final result to the nearest dollar:
\[
\text{Total Tax Owed} = \$[/tex]22,485
\]
Thus, Emilio will owe \$22,485 in federal income taxes.
