-In 2018, Jordan and Kailey earned a combined taxable income of $148,800 from employment plus $1,000 in long term capital gains and they file a joint tax return. What is their total federal income tax? Round to the nearest dollar.
A) $33,780
B) $29,063
C) $24,765
D) $24,659

Question

-In 2018, Jordan and Kailey earned a combined taxable income of $148,800 from employment plus $1,000 in long term capital gains and they file a joint tax return. What is their total federal income tax? Round to the nearest dollar.
A) $33,780 
B) $29,063 
C) $24,765 
D) $24,659

Quizplus · Accepted Answer

The taxable income of $148,800 falls into the 22% tax bracket for married couples filing jointly in 2018. The tax calculation involves applying the tax rates to the income within each bracket. The long-term capital gains are taxed at a lower rate, typically 0% for income up to $77,200, 15% for income up to $479,000, and 20% for income above that. After calculating the tax for each portion of the income, the total federal income tax is approximately $24,765.

-In 2018, Jordan and Kailey Earned a Combined Taxable Income