Kim Ye is single and earns $40,000 in taxable income. He uses the following tax rate schedule to calculate the taxes he owes. Calculate the dollar amount of estimated taxes that Kim owes.

Question

Quizplus · Accepted Answer

Using the tax rate schedule provided, Kim falls into the following tax brackets:

- $0 - $9,875: 10%
- $9,875 - $40,125: 12%

Therefore, his tax liability can be calculated as:

- $9,875 x 0.10 = $987.50
- ($40,000 - $9,875) x 0.12 = $3,120.00

Total tax liability = $987.50 + $3,120.00 = $4,107.50

However, this is only an estimate as it does not take into account any deductions or credits that Kim may be eligible for. Additionally, since Kim is single and presumably does not have any dependents or other sources of income, he may be eligible to claim the standard deduction of $12,200 (in 2019). This would reduce his taxable income and therefore his tax liability.

Kim Ye Is Single and Earns $40,000 in Taxable Income