Question

Here are the U.S. tax rates and their corresponding tax brackets based on filing status for single individuals (i.e. not corporations) If taxable income is: Then income tax equals: Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875 Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125 Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525 Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300 Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350 Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431. How much are her federal income taxes to the nearest dollar

Answer 1

Answer:

Layla's federal income taxes to the nearest dollar are:

= $39,393.

Explanation:

a) Data and Calculations:

Layla's taxable income

 for 2019 =                 $182,431    Income Tax

Income tax on            (163,300) = $33,271.50

Excess of $163,300        19,131 =    $6,121.92 ($19,131 * 32%)

Total income tax payable =       $39,393.42

U.S. Tax Rates and Corresponding Tax Brackets (Single Individuals)

If taxable income is:            Then income tax equals:

Not over $9,875 10% of the taxable income Over $9,875 but not over $40,125 $987.50 plus 12% of the excess over $9,875

Over $40,125 but not over $85,525 $4,617.5 plus 22% of the excess over $40,125

Over $85,525 but not over $163,300 $14,605.5 plus 24% of the excess over $85,525

Over $163,300 but not over $207,350 $33,271.5 plus 32% of the excess over $163,300

Over $207,350 but not over $518,400 $47,367.5 plus 35% of the excess over $207,350

Over $518,400 $156,235 plus 37% of the excess over $518,400 Layla's taxable income for 2019 was $182,431