Table 1.4
Use the following tax rates and income brackets to answer the following question(s).

-Josh earned $89,700 in taxable income and files an individual tax return.What is the amount of Josh's taxes for the year?

Question

Table 1.4
Use the following tax rates and income brackets to answer the following question(s).
 
-Josh earned $89,700 in taxable income and files an individual tax return.What is the amount of Josh's taxes for the year?

Quizplus · Accepted Answer

Looking at the tax rate table, Josh's income falls into the tax bracket of $80,001 to $171,050, which has a base tax amount of $14,785 plus 28% of the amount over $80,000. Calculating Josh's taxes using this formula, we get $18,836, which is answer choice B.

Table 1.4 Use the Following Tax Rates and Income Brackets to Answer