In 2013,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 2013 federal income tax?

Question

Quizplus · Accepted Answer

Richard's taxable income is $40,000 - $6,100 (standard deduction) - $3,900 (personal exemption) = $30,000. The qualified dividends are taxed at a lower rate. The tax on $30,000 is calculated using the 2013 tax brackets, resulting in $3,454.

In 2013,Richard,a Single Taxpayer,has Adjusted Gross Income of $40,000