Question

Derek, a single taxpayer, has agi of $55,200 which includes $5,000 of qualified dividends. derek does not itemize deductions. what is his 2019 federal income tax?

Answer 1

Based on the fact that Derek does not itemize deductions, then his 2019 federal income tax is $7,540

What is the federal income?

With an AGI of $55,000, Derek is in the $40,126 to $85,525 tax bracket.

His tax is:

= $4,617.50 plus 22% of the amount over $40,125

= $4,617.50 + (22% x (50,000 - 40,125))

= $6,790

Capital gains tax:

= 5,000 x 15%

= $750

Total federal tax:

= 750 + 6,790

= $7,540

In conclusion, based on Derek's AGI and the qualified dividends, Derek's 2019 federal income tax was $7,540.

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