If Susie earns $750,000 in taxable income, how much tax will she pay as a single taxpayer for 2020? (Use tax rate schedule.)

Question

Quizplus · Accepted Answer

Using the 2020 tax rate schedule for a single filer, we can calculate Susie's tax liability. For taxable income of $750,000, the tax is calculated as follows:
- The first $9,875 is taxed at a rate of 10% = $987.50
- The next $30,250 ($9,876 to $40,125) is taxed at a rate of 12% = $3,630
- The next $45,400 ($40,126 to $85,525) is taxed at a rate of 22% = $9,988
- The next $125,450 ($85,526 to $211,975) is taxed at a rate of 24% = $30,108
- The next $198,050 ($211,976 to $410,525) is taxed at a rate of 32% = $63,376
- The remaining $241,000 ($410,526 to $750,000) is taxed at a rate of 35% = $84,835

Adding up all of these amounts, Susie's total tax liability for 2020 is $241,927. Therefore, the correct answer is C.

If Susie Earns $750,000 in Taxable Income, How Much Tax