Cindy has taxable income of $67,000 excluding a $20,000 taxable gain on the sale of bonds she purchased 7 years ago. If Cindy is single, what is her total tax liability for 2018?

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Cindy's total taxable income is $87,000 ($67,000 + $20,000). For 2018, the tax brackets for a single filer are: 10% on income up to $9,525, 12% on income over $9,525 to $38,700, 22% on income over $38,700 to $82,500, and 24% on income over $82,500. Calculating the tax: 10% of $9,525 = $952.50, 12% of ($38,700 - $9,525) = $3,501, 22% of ($82,500 - $38,700) = $9,636, and 24% of ($87,000 - $82,500) = $1,080. Total tax = $952.50 + $3,501 + $9,636 + $1,080 = $15,169.50. However, the $20,000 gain is taxed at a lower capital gains rate of 15%, which is $3,000. Subtracting the difference in tax rates on the gain ($3,000 - $1,080 = $1,920), the total tax liability is $15,169.50 - $1,920 = $13,679.50.

Cindy Has Taxable Income of $67,000 Excluding a $20,000 Taxable