Question

Based on the tax brackets, what’s the estimated total tax due for a single taxpayer with a taxable income of $43,500?

Answer 1

Answer:

C. $5,509.50

Step-by-step explanation:

The computation of the estimated total tax due in case of taxable income for $43,500 is shown below:

Since in the question the income brackets and based on the income the different tax is to be charged

For $9,525, the 10% tax is charged i.e

$= \ 9,525 \times 10\%$

= $952.50

Upto $38,700, the 12% tax is charged i.e

$= (\ 38,700 - \ 9,526) \times 12\%$

= $3,500.88

The remaining amount left is

$= (\ 43,500 - \ 38,701) \times 22\%$

= $1,055.78

Now the total tax due is

= $952.50 + $3,500.88 + $1,055.78

= $5,509.16 approx i.e $5,509.50