Answer:
$7271
Step-by-step explanation:
This tax rate table makes computing the tax unnecessarily complicated. For a taxable income amount of $46,000, the tax is computed as ...
0.25 × the amount over $37,650 + tax on $37650
And the tax on $37650 is computed as ...
0.15 × the amount of $37650 that is over $9275 + tax on $9275
And the tax on $9275 is computed as ...
0.10 × $9275 = $927.50
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Then the tax on $37650 is ...
0.15 × ($37650 -9275) + 927.50 = $5183.75
And that makes the tax on $46000 be ...
0.25 × ($46000 -37650) + 5183.75 = $7271.25
<em>This may be the number your computer is looking for</em>.
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All amounts on a US federal tax form should be rounded to the nearest dollar. Thus the actual tax owed on $46,000 is $7271.00.
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<em>Further comments on the problem</em>
The "taxable income" is the amount that appears on the tax form <em>after deductions and exemptions</em> are subtracted from total income. Hence those numbers in the table have no bearing on this problem.
Some tax tables give a formula specifically geared to the particular income range. Here, that formula might be
- 0.25×(taxable income) - $4228.75 . . . . . for income $37650–91150
It could also be written as ...
- 0.25×((taxable income) - $16915) . . . . for income $37650–91150
