Ben Fasby has taxable income of $7,000,and the following tax rate schedule is applicable:
Taxable Income Tax Rate
$0 to $3,400 0 %
$3,400 to $5,500 12 %
$5,500 to $7,600 14 %
Ben's tax liability is

Question

Quizplus · Accepted Answer

Ben's taxable income falls within the third tax bracket, which has a tax rate of 14%.

Tax on income in the first bracket ($3,400 - $0) = $0 
Tax on income in the second bracket ($5,500 - $3,400) at 12% = $222 
Tax on income in the third bracket ($7,000 - $5,500) at 14% = $126

Total tax liability = $0 + $222 + $126 = $348.

However, Ben may also be eligible for any applicable deductions or credits, which could change his final tax liability.

Ben Fasby Has Taxable Income of $7,000,and the Following Tax