Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.

-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What is his average tax rate in 2012?

Question

Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.
 
-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What is his average tax rate in 2012?

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the taxable income. Assuming the tax brackets for 2012, Jake's income falls into the 10% and 15% brackets. The average tax rate would be a weighted average of these rates, resulting in approximately 12.5%.

Table 12-9 United States Income Tax Rates for a Single Individual, 2012