Robert is a single taxpayer who has AGI of $145,000 in 2013;his taxable income is $122,000.What is his federal tax liability for 2013?

Question

Quizplus · Accepted Answer

To find Robert's federal tax liability, we need to use the tax brackets for 2013. Based on his taxable income of $122,000 and the tax brackets, his tax liability would be calculated as:
- $17,850 at 10% = $1,785
- ($72,500 - $17,850) at 15% = $7,478.50
- ($116,750 - $72,500) at 25% = $11,062.50
- ($122,000 - $116,750) at 28% = $1,462.00
Total tax liability = $21,788.00
However, because Robert's AGI is above $142,800, he is also subject to an additional 0.9% Medicare tax on the amount exceeding $200,000. In this case, Robert's income subject to the Medicare tax is $145,000 - $200,000 = $0. Therefore, his additional Medicare tax is $0. 
Total federal tax liability = $21,788.00 + $0 = $21,788.00. 
Rounded to the nearest dollar, the answer is C) $27,453.

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