Asked by itzel olivera on May 19, 2024
Verified
John and Loretta Smith are in the 28% tax bracket.Their joint taxable income is $134,899.If the first $16,050 is taxed at 10%,with the remainder at 28%,how much tax will they owe?
A) $29,371.72
B) $30,271.75
C) $34,882.72
D) $38,724.75
Tax Bracket
Where each line of the tax schedule has an increasing percent based on increasing income.
Taxable Income
Income subject to tax, after deductions and exemptions, according to the law.
Joint Taxable Income
The total taxable income jointly reported by a married couple or partners filing a combined tax return.
- Engage tax rates and schedules to calculate the taxable income and ascertain the taxes due for individuals and married couples filing jointly.
- Understand the progressive nature of the U.S. tax system and how it applies to taxpayers at different income levels.
Verified Answer
GM
Gissel MoraahMay 26, 2024
Final Answer :
C
Explanation :
The amount taxed at 10% is $16,050. The amount taxed at 28% is $134,899 - $16,050 = $118,849.
The tax on the first $16,050 is $16,050 x 0.10 = $1,605.
The tax on the remaining $118,849 is $118,849 x 0.28 = $33,277.72.
Therefore, the total tax owed is $1,605 + $33,277.72 = $34,882.72.
Thus, the best choice is C.
The tax on the first $16,050 is $16,050 x 0.10 = $1,605.
The tax on the remaining $118,849 is $118,849 x 0.28 = $33,277.72.
Therefore, the total tax owed is $1,605 + $33,277.72 = $34,882.72.
Thus, the best choice is C.
Learning Objectives
- Engage tax rates and schedules to calculate the taxable income and ascertain the taxes due for individuals and married couples filing jointly.
- Understand the progressive nature of the U.S. tax system and how it applies to taxpayers at different income levels.