Tim Tradesman had a taxable income of $82,500. He figured his tax from the table.

1 answer:

8 0

His earned income level are as follows.

The base amount is $14,138.50

The amount over $62,450 = $82,500 - $62,450 =$20,050

The amount of tax on the third $20,050 is given by 31% of $20,050 = 0.31 x $20,050 = $6,215.5
(i.e. Multiply line 3 by 31% = $6,215.5)

Total tax = $ 14,138.50 + $6,215.50 = $20,354
(i.e. Add lines 2 and 4 = $20,354)

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