Follow the steps to calculate the federal income tax owed on a \[tex]$30,000 salary, using the given tax rates.

Now, calculate the amount of taxable income in the 12\% tax bracket.

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

Taxable Income = \[tex]$17,800

\[
\$[/tex]9,700 \cdot 10\% = \[tex]$970
\]
\[
(\$[/tex]17,800 - \[tex]$9,700) \cdot 12\% = \$[/tex]
\]



Answer :

Sure, let’s go through the steps to determine the amount of taxable income in the 12% tax bracket on a [tex]$30,000 salary, given the standard deduction and tax rates. 1. Calculate the Taxable Income: - Start with the salary: $[/tex]30,000.
- Subtract the standard deduction of [tex]$12,200. - So, the taxable income is: \[ 30,000 - 12,200 = 17,800 \text{ dollars} \] 2. Determine Tax in the 10% Bracket: - The first $[/tex]9700 of the taxable income is taxed at 10%.
- Calculate the tax for this portion:
[tex]\[ 9,700 \times 0.10 = 970 \text{ dollars} \][/tex]

3. Determine Remaining Taxable Income for the 12% Bracket:
- Since [tex]$9,700 is already taxed at 10%, subtract this from the total taxable income to find the portion in the 12% tax bracket. - So, the remaining taxable income is: \[ 17,800 - 9,700 = 8,100 \text{ dollars} \] - This $[/tex]8,100 is now in the 12% tax bracket.

4. Calculate Tax for the 12% Bracket:
- Calculate the tax for the remaining [tex]$8,100: \[ 8,100 \times 0.12 = 972 \text{ dollars} \] Therefore, the amount of taxable income in the 12% tax bracket is $[/tex]8,100, and the tax on it, given the 12% rate, is $972.