An individual earned $75,000 of taxable income from wages, $10,000 of interest income, and $12,000 of dividend income. Her tax rate is 30% on ordinary income and 15% on dividend
Income. How much does she owe in taxes?

Question

Quizplus · Accepted Answer

The individual owes 30% on $85,000 (wages + interest) and 15% on $12,000 (dividends). So, $85,000 * 0.30 = $25,500 and $12,000 * 0.15 = $1,800. Total tax owed is $25,500 + $1,800 = $27,300.

An Individual Earned $75,000 of Taxable Income from Wages, $10,000