In 2019,Richard,a single taxpayer,has adjusted gross income of $40,200.His AGI includes $4,000 of qualified dividends.Richard does not itemize deductions.What is his 2019 federal income tax?

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Quizplus · Accepted Answer

Richard's taxable income is $40,200 - $12,200 (standard deduction for single filers in 2019) = $28,000. The qualified dividends are taxed at 0% up to $39,375 for single filers. Therefore, the entire $4,000 of qualified dividends is taxed at 0%. The remaining $24,000 is taxed at the 10% and 12% brackets. The tax is $970 (10% of $9,700) + $1,716 (12% of $14,300) = $2,686.

In 2019,Richard,a Single Taxpayer,has Adjusted Gross Income of $40,200