Robert is a single taxpayer who has AGI of $145,000 in 2016; his taxable income is $122,000. What is his federal tax liability for 2016?

Question

Quizplus · Accepted Answer

Robert's taxable income is $122,000. The tax rate for the $120,000-$132,900 bracket is 25%. The tax on $120,000 is $27,000. The tax on the remaining $2,000 is $500 (25% of $2,000). Robert's total federal tax liability is $27,000 + $500 = $27,500.

Robert Is a Single Taxpayer Who Has AGI of $145,000