In 2016,Richard,a single taxpayer,has adjusted gross income of $40,150.His AGI includes $4,000 of qualified dividends.Richard has no dependents and does not itemize deductions.What is his 2016 federal income tax?

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Quizplus · Accepted Answer

Richard's taxable income is $40,150 - $6,300 (standard deduction) - $4,050 (personal exemption) = $29,800. The qualified dividends are taxed at 0% up to $37,650. The remaining income is taxed using the 2016 tax brackets for single filers. The tax on $29,800 is $3,406.

In 2016,Richard,a Single Taxpayer,has Adjusted Gross Income of $40,150