Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.

-Refer to Table 12-2.Costa is a single person whose taxable income is $50,000 a year.What is his total tax due in 2002?

Question

Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.
 
-Refer to Table 12-2.Costa is a single person whose taxable income is $50,000 a year.What is his total tax due in 2002?

Quizplus · Accepted Answer

According to the table, the tax rate for a taxable income of $50,000 in 2002 is 22%, and the tax due is $8,283.50. However, Costa may claim a $3,200 personal exemption, reducing his taxable income to $46,800 ($50,000 - $3,200). The tax rate for this new taxable income bracket is 15%, and the tax due is $4,703.50. Adding back the exemption phase-out (since Costa's income is above the threshold), the total tax due is $10,483.50.

Table 12-2 United States Income Tax Rates for a Single Individual, 2002