If Susie earns $750,000 in taxable income,how much tax will she pay as a single taxpayer for year 2017? (Use tax rate schedule in the text)

Question

Quizplus · Accepted Answer

Based on the tax rate schedule for 2017, Susie falls under the highest tax bracket of 39.6%, which applies to incomes over $418,400. The formula to calculate the tax liability would be:

[(Taxable Income - Previous Bracket Upper Limit) x Tax Rate] + Previous Bracket Tax Liability

Using this formula, we can calculate Susie's tax liability as follows:

[($750,000 - $418,400) x 0.396] + $121,505.25 + $28,573.60 + $10,169.00 = $252,818.85

Therefore, the correct answer is C, $252,818.85.

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