In 2014,Richard,a single taxpayer,has adjusted gross income of $40,000.His AGI includes $4,000 of qualified dividends.Richard has no dependents and does not itemize deductions.What is his 2014 federal income tax?

Question

Quizplus · Accepted Answer

Richard's taxable income is $40,000 - $6,200 (standard deduction) - $3,950 (personal exemption) = $29,850. The tax on $25,850 (ordinary income) is $3,424, and the qualified dividends are taxed at 0% because they fall within the 15% tax bracket.

In 2014,Richard,a Single Taxpayer,has Adjusted Gross Income of $40,000