In 2017,Richard,a single taxpayer,has adjusted gross income of $40,200.His AGI includes $4,000 of qualified dividends.Richard has no dependents and does not itemize deductions.What is his 2017 federal income tax?

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A)
 11ea7cb8_54ac_357f_928c_0ba725b715ba_TB1258_00 Taxable income of $29,800 less qualifying dividends of $4,000 = $25,800.The tax on $25,800 is .15(25,800 - 9,325)+ 932.50 = $3,404 rounded.There is no tax on the dividends since Richard has a 15% marginal tax rate.

In 2017,Richard,a Single Taxpayer,has Adjusted Gross Income of $40,200