Geronimo files his tax return as a head of household for year 2020. If his taxable income is $77,000, what is his average tax rate? (Use tax rate schedule.)(Round your final answer to two decimal places.)
A)14.66 percent
B)16.66 percent
C)11.96 percent
D)22.00 percent
E)None of the choices are correct

Question

Quizplus · Accepted Answer

To find the average tax rate, we need to calculate the total tax liability and then divide it by the taxable income. For a head of household in 2020, the tax brackets are as follows: 10% on income up to $14,100, 12% on income over $14,100 up to $53,700, and 22% on income over $53,700 up to $85,500. Geronimo's taxable income of $77,000 falls into these brackets. Calculating the tax: $1,410 (10% of $14,100) + $4,734 (12% of $39,600) + $5,130 (22% of $23,300) = $11,274. The average tax rate is $11,274 / $77,000 = 0.1466 or 14.66%.

Geronimo Files His Tax Return as a Head of Household