Andrea is single and has a 2014 taxable income of $199,800. She also received $15,000 of tax-exempt income. Andrea's average tax rate is:

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Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the taxable income. Assuming Andrea's tax is calculated using the 2014 tax brackets, her tax would be approximately $49,800. Dividing $49,800 by her taxable income of $199,800 gives an average tax rate of about 24.9%. The tax-exempt income is not included in the taxable income calculation.

Andrea Is Single and Has a 2014 Taxable Income of $199,800