Cindy has taxable income of $67,000 excluding a $20,000 taxable gain on the sale of bonds she purchased 7 years ago.If Cindy is single, what is her total tax liability for 2019?

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Quizplus · Accepted Answer

Cindy's total taxable income is $67,000 + $20,000 = $87,000. For a single filer in 2019, the tax rates are: 10% on the first $9,700, 12% on income between $9,701 and $39,475, 22% on income between $39,476 and $84,200. Cindy's tax calculation would be: 10% of $9,700 = $970, plus 12% of ($39,475 - $9,700) = $3,573, plus 22% of ($87,000 - $39,475) = $10,455.50. Adding these together gives a total tax liability of $13,598.50.

Cindy Has Taxable Income of $67,000 Excluding a $20,000 Taxable