What is the tax liability for a taxpayer who is married filing jointly with taxable income of $67,500,that includes a taxable qualified dividend of $1,000? All answers should be rounded to the nearest dollar.

Question

Quizplus · Accepted Answer

First, we need to calculate the tax on the regular income of $66,500. Using the 2021 tax brackets for married filing jointly, the tax on $66,500 is $9,071. 
Next, we need to calculate the tax on the qualified dividend of $1,000. Since it is a qualified dividend, it is taxed at a maximum rate of 15%. Therefore, the tax on the dividend is $150. 
Finally, we add the two taxes together ($9,071 + $150) to get the total tax liability of $9,221. Rounded to the nearest dollar, the answer is C) $9,071.

What Is the Tax Liability for a Taxpayer Who Is