Tarik, a single taxpayer, has AGI of $55,000 which includes $1,000 of qualified dividends. Tarik does not of itemize deductions. What is his 2018 federal income tax?

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Quizplus · Accepted Answer

For 2018, the standard deduction for a single filer is $12,000. Tarik's taxable income is $55,000 - $12,000 = $43,000. The tax on $42,000 of ordinary income is calculated using the tax brackets for 2018. The qualified dividends are taxed at a lower rate. The total tax is approximately $5,330.

Tarik, a Single Taxpayer, Has AGI of $55,000 Which Includes