Question

Use the 2016 marginal tax rates to compute the tax owed by the following person.

Answer 1

Answer:

Step-by-step explanation:

Use the Single column to solve this problem.

First you need to figure up her taxes and then subtract the tax credit.

She has a taxable income of 17000. This puts her in the 15% bracket.

First we need to get the % owed on the first  9275 dollars that is taxable.

.10 * 9275 =  927.50

Next we need to get the % owed on the rest of her money, which is in the 15 % bracket

.15 * (17000 - 9275) = 1158.75

Finally, sum up our taxes on the money and then subtract our tax credit, which is 2500

(927.50 + 1158.75) -  2500

(2086.25) -  2500 = -413.75

Since you have a negative number, the government owes you $413.75 dollars. If it was not a negative number,  you would owe the government.