If the federal government used the progressive tax rate below for individual income tax, calculate the federal income tax owed on a \[tex]$55,000 salary.

\begin{tabular}{|r|c|}
\hline
Standard Deduction & \$[/tex]12,200 \\
\hline
Income Range (\[tex]$) & Progressive Tax Rate \\
\hline
\$[/tex]0-9,700 & 10\% \\
\hline
\[tex]$9,701-39,475 & 12\% \\
\hline
\$[/tex]39,476-84,200 & 22\% \\
\hline
\[tex]$84,201-160,275 & 24\% \\
\hline
\$[/tex]160,276+ & 32\% \\
\hline
\end{tabular}

[tex]\[
\text{Tax} = \$[?]
\][/tex]

\square Enter



Answer :

To calculate the federal income tax owed on a \[tex]$55,000 salary, we'll follow the progressive tax rate structure provided. Here's a detailed, step-by-step solution: 1. Calculate the Taxable Income: \[ \text{Taxable Income} = \text{Gross Income} - \text{Standard Deduction} \] Given: \[ \text{Gross Income} = \$[/tex]55,000
\]

[tex]\[ \text{Standard Deduction} = \$12,200 \][/tex]

Thus:

[tex]\[ \text{Taxable Income} = \$55,000 - \$12,200 = \$42,800 \][/tex]

2. Calculate the Tax Owed:

We will use the given tax brackets and apply each rate to the corresponding portion of the taxable income.

- First bracket (0 - \[tex]$9,700 at 10%): \[ \text{Tax from first bracket} = \$[/tex]9,700 \times 0.10 = \[tex]$970 \] - Second bracket (\$[/tex]9,701 - \[tex]$39,475 at 12%): \[ \text{Amount in second bracket} = \$[/tex]39,475 - \[tex]$9,700 = \$[/tex]29,775
\]

[tex]\[ \text{Tax from second bracket} = \$29,775 \times 0.12 = \$3,573 \][/tex]

- Third bracket (\[tex]$39,476 - \$[/tex]84,200 at 22%):

The taxable income falls into the third bracket up to \[tex]$42,800: \[ \text{Amount in third bracket} = \$[/tex]42,800 - \[tex]$39,475 = \$[/tex]3,325
\]

[tex]\[ \text{Tax from third bracket} = \$3,325 \times 0.22 = \$731.50 \][/tex]

3. Sum Up the Taxes from All Brackets:

[tex]\[ \text{Total Tax Owed} = \$970 + \$3,573 + \$731.50 = \$5,274.50 \][/tex]

Therefore, the federal income tax owed on a \[tex]$55,000 salary is approximately \(\$[/tex]5,274.16\).

The taxable income is [tex]\(\$42,800\)[/tex].