Heather expects taxable revenues of $123,450 in the current year.Her adjustments to revenues are projected to be $13,430 this year.Her deductions and exemptions are projected at $45,300.There is no state income tax where Heather resides.What is her federal tax under an assumed 30% average tax bracket?

Question

Quizplus · Accepted Answer

Heather's taxable income is $123,450 - $13,430 = $110,020. Her federal tax under a 30% average tax bracket is $110,020 x 0.30 = $19,416.

Heather Expects Taxable Revenues of $123,450 in the Current Year