Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.

-Refer to Table 12-2.Surbhi is a single person whose taxable income is $150,000 a year.What is her total tax due in 2003?

Question

Table 12-2
United States Income Tax Rates for a Single Individual, 2002 and 2003.
 
-Refer to Table 12-2.Surbhi is a single person whose taxable income is $150,000 a year.What is her total tax due in 2003?

Quizplus · Accepted Answer

Looking at the table, we can see that for a taxable income of $150,000, Surbhi falls into the bracket of $131,450 to $200,000. In this bracket, the tax owed is $30,817.50 plus 28% of the excess over $131,450. The excess over $131,450 is $18,550 ($150,000 - $131,450). So, Surbhi's total tax due in 2003 would be $30,817.50 + (0.28 * $18,550) = $39,553.

Table 12-2 United States Income Tax Rates for a Single Individual, 2002