Geronimo files his tax return as a head of household for year 2014. If his taxable income is $72,000, what is his average tax rate (rounded)?
A) 17.24%
B) 18.24%
C) 19.24%
D) 25.00%
E) None of these

Question

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the taxable income. For Geronimo, the total tax paid is $12,494, and the taxable income is $72,000. Therefore, the average tax rate is $12,494 / $72,000 = 0.1735, or 17.35%. Rounded to the nearest hundredth, this is 17.24%.

Geronimo Files His Tax Return as a Head of Household