Answered

\begin{tabular}{|c|c|}
\hline \multicolumn{2}{|c|}{ Single } \\
\hline If Taxable Income Is Between: & Then the Tax Due Is: \\
\hline \[tex]$0-\$[/tex]9700 & 10\% of taxable income \\
\hline \[tex]$9701-\$[/tex]39,475 & \[tex]$970 + 12\% of the amount over \$[/tex]9700 \\
\hline \[tex]$39,476-\$[/tex]84,200 & \[tex]$4543 + 22\% of the amount over \$[/tex]39,475 \\
\hline \[tex]$84,201-\$[/tex]160,725 & \[tex]$14,382.50 + 24\% of the amount over \$[/tex]84,200 \\
\hline \[tex]$160,726-\$[/tex]204,100 & \[tex]$32,748.50 + 32\% of the amount over \$[/tex]160,725 \\
\hline \[tex]$204,101-\$[/tex]510,300 & \[tex]$46,628.50 + 35\% of the amount over \$[/tex]204,100 \\
\hline \[tex]$510,301+ & \$[/tex]153,798.50 + 37\% of the amount over \[tex]$510,300 \\
\hline
\end{tabular}

In a year, Ivan earns \$[/tex]10,000 in taxable income from his part-time job. Using the above table, how much federal income tax does Ivan owe?

A. \[tex]$1006
B. \$[/tex]1000
C. \[tex]$1500
D. \$[/tex]970



Answer :

GinnyAnswer
To determine Ivan's federal income tax using the provided tax brackets, let's break down the process step-by-step:

1. Identify Ivan's Taxable Income:
Ivan's taxable income is \[tex]$10,000. 2. Determine the Appropriate Tax Bracket: From the table given, we can see that Ivan’s taxable income of \$[/tex]10,000 falls into the second tax bracket:
- \[tex]$9,701 - \$[/tex]39,475: \[tex]$970 + 12% of the amount over \$[/tex]9,700.

3. Calculate the Base Tax and Additional Tax:
- The base tax for income up to \[tex]$9,700 is \$[/tex]970.
- For income over \[tex]$9,700, the additional tax rate is 12%. 4. Calculate the Amount Over the Base Bracket: - Ivan’s income of \$[/tex]10,000 is \[tex]$300 over the first bracket threshold (\$[/tex]9,700).

5. Compute the Tax for the Amount Over \[tex]$9,700: - Additional Tax = 12% of \$[/tex]300
- Additional Tax = 0.12 * \[tex]$300 - Additional Tax = \$[/tex]36

6. Sum the Base Tax and Additional Tax:
- Total Tax = Base Tax + Additional Tax
- Total Tax = \[tex]$970 + \$[/tex]36
- Total Tax = \[tex]$1006 Thus, Ivan owes \$[/tex]1,006 in federal income tax. Therefore, given the options, the correct amount of federal income tax Ivan owes is \$1,006.

Other Questions