-Jon earned $82,500 in taxable income, all from wages and interest, and files an individual tax return. What is the amount of Josh's taxes for the year 2018? Round to the nearest dollar.

Question

Quizplus · Accepted Answer

For the tax year 2018, the U.S. federal income tax brackets for a single filer were as follows: 10% on income up to $9,525, 12% on income over $9,525 to $38,700, 22% on income over $38,700 to $82,500, and 24% on income over $82,500. Jon's taxable income of $82,500 falls into these brackets, so we calculate his tax as follows: 10% of $9,525 = $952.50, 12% of ($38,700 - $9,525) = $3,501, 22% of ($82,500 - $38,700) = $9,636. Total tax = $952.50 + $3,501 + $9,636 = $14,089.50, which rounds to $14,090.

-Jon Earned $82,500 in Taxable Income, All from Wages and Interest