Maria is single and has a 2017 taxable income of $199,800.She also received $15,000 of tax-exempt income.Maria's effective tax rate is:

Question

Quizplus · Accepted Answer

To calculate the effective tax rate, we need to calculate the total tax paid divided by the total taxable income. For 2017, Maria's taxable income is $199,800. After subtracting the standard deduction ($6,350) and personal exemption ($4,050), her taxable income becomes $189,400. Using the tax brackets for single filers, we can calculate that Maria owes $47,684.50 in federal income tax.

To calculate the effective tax rate, we need to divide the total tax paid ($47,684.50) by the total income, which is the sum of taxable income ($189400) and tax-exempt income ($15,000). This gives us a total income of $204,400.

Effective tax rate = Total tax paid / Total income 
Effective tax rate = $47,684.50 / $204,400 
Effective tax rate = 0.233 or 23.0%

Therefore, the answer is choice B, 23.0%.

Maria Is Single and Has a 2017 Taxable Income of $199,800.She