To determine how much Julie will pay in income tax, we will apply the progressive tax rates to her taxable income of \[tex]$50,000. We need to calculate how much tax she owes for each income bracket up to \$[/tex]50,000 and then sum those amounts.
Here’s the detailed step-by-step calculation:
1. First Bracket:
- Tax Rate: 10%
- Taxable Income Level: [tex]$0 - $[/tex]9,225
- Calculation:
[tex]\[
\$9,225 \times 0.10 = \$922.50
\][/tex]
2. Second Bracket:
- Tax Rate: 15%
- Taxable Income Level: [tex]$9,226 - $[/tex]37,450
- Calculation:
[tex]\[
(\$37,450 - \$9,225) \times 0.15 = \$28,225 \times 0.15 = \$4,233.75
\][/tex]
3. Third Bracket:
- Tax Rate: 25%
- Taxable Income Level: [tex]$37,451 - $[/tex]90,750
- Julie’s income falls within this bracket.
- Calculation:
[tex]\[
(\$50,000 - \$37,451) \times 0.25 = \$12,549 \times 0.25 = \$3,137.25
\][/tex]
Adding the taxes from each bracket:
[tex]\[
\$922.50 + \$4,233.75 + \$3,137.25 = \$8,293.50
\][/tex]
Therefore, the total amount Julie will pay in income tax this year is \[tex]$8,293.50, which rounds to \$[/tex]8,293.75 (considering the mentioned rates).
So, the correct answer is:
A. \$8,293.75
