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Figure: U.S.Marginal and Average Tax Rates
-(Figure: U.S.Marginal and Average Tax Rates)Using the tax rates shown in the figure,assume your annual income is $15,000,that you have a deduction of $1,800 for moving expenses,and that you claim four exemptions of $3,300: one for yourself and one for each of your three children.How much taxes are you expected to pay?

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Figure: U.S.Marginal and Average Tax Rates 
-(Figure: U.S.Marginal and Average Tax Rates)Using the tax rates shown in the figure,assume your annual income is $15,000,that you have a deduction of $1,800 for moving expenses,and that you claim four exemptions of $3,300: one for yourself and one for each of your three children.How much taxes are you expected to pay?

Quizplus · Accepted Answer

Your taxable income is calculated by subtracting the deduction and exemptions from your annual income: $15,000 - $1,800 (moving expenses) - $3,300 * 4 (exemptions) = $15,000 - $1,800 - $13,200 = $0. Since your taxable income is $0, you are expected to pay $0 in taxes.

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