Andrea is single and has a 2016 taxable income of $199,800.She also received $15,000 of tax-exempt income.Andrea's average tax rate is:

Question

Quizplus · Accepted Answer

To find the average tax rate, we need to first calculate Andrea's total tax liability.

The 2016 tax brackets for a single taxpayer are:

10% on income up to $9,275 
15% on income between $9,276 and $37,650 
25% on income between $37,651 and $91,150 
28% on income between $91,151 and $190,150 
33% on income between $190,151 and $413,350 
35% on income between $413,351 and $415,050 
39.6% on income over $415,050

Since Andrea has a taxable income of $199,800 and received $15,000 of tax-exempt income, her taxable income is $184,800.

Her tax liability can be calculated as follows:

- 10% on the first $9,275 = $927.50 
- 15% on the income between $9,276 and $37,650 = $4,293.75 
- 25% on the income between $37,651 and $91,150 = $21,381.25 
- 28% on the income between $91,151 and $184,800 = $33,739.48

Her total tax liability is $60,342.98.

To find Andrea's average tax rate, we divide her total tax liability by her taxable income:

$60,342.98 / $184,800 = 0.326 or 32.6% (rounded to one decimal place)

Therefore, Andrea's average tax rate is 24.8%.

Andrea Is Single and Has a 2016 Taxable Income of $199,800.She