Maureen Smith is a single individual.She claims a standard deduction of $12,000.Her salary for the year was $177,100.Assume the following tax table is applicable. Single Individuals
What is her federal tax liability?

Question

Maureen Smith is a single individual.She claims a standard deduction of $12,000.Her salary for the year was $177,100.Assume the following tax table is applicable. Single Individuals
What is her federal tax liability?
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Quizplus · Accepted Answer

First, we subtract the standard deduction ($12,000) from her salary to get her taxable income: 
$177,100 - $12,000 = $165,100

Next, we use the tax table to calculate her federal tax liability: 
The first $9,525 is taxed at 10% = $952.50 
The next $29,175 ($38,700 - $9,525) is taxed at 12% = $3,501 
The next $59,300 ($97,000 - $38,700) is taxed at 22% = $13,046 
The next $49,400 ($146,400 - $97,000) is taxed at 24% = $11,856 
The remaining $18,700 ($165,100 - $146,400) is taxed at 32% = $5,984

Adding them all up:
$952.50 + $3,501 + $13,046 + $11,856 + $5,984 = $34,521.50

Therefore, her federal tax liability is $34,521.50.

Maureen Smith Is a Single Individual