Robert is a single taxpayer who has AGI of $145,000 in 2015; his taxable income is $122,000. What is his federal tax liability for 2015?

Question

Quizplus · Accepted Answer

To calculate Robert's federal tax liability, we need to use the tax brackets for single taxpayers. For 2015, the tax brackets and rates are as follows:

- 10% on taxable income between $0 and $9,225
- 15% on taxable income between $9,226 and $37,450
- 25% on taxable income between $37,451 and $90,750
- 28% on taxable income between $90,751 and $189,300
- 33% on taxable income between $189,301 and $411,500
- 35% on taxable income between $411,501 and $413,200
- 39.6% on taxable income over $413,200

Robert's taxable income of $122,000 falls within the 28% tax bracket.

The first $9,225 of his taxable income is taxed at 10%, which equals $922.50.

The next $28,225 of his taxable income (the amount between $9,226 and $37,450) is taxed at 15%, which equals $4,233.75.

The next $84,300 of his taxable income (the amount between $37,451 and $121,750) is taxed at 25%, which equals $21,075.

Therefore, Robert's federal tax liability for 2015 is $922.50 + $4,233.75 + $21,075 = $27,231.25.

Therefore, the best choice is C.

Robert Is a Single Taxpayer Who Has AGI of $145,000