Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013.
-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What is his average tax rate in 2012?

Question

Table 12-9
United States Income Tax Rates for a Single Individual, 2012 and 2013. 
-Refer to Table 12-9. Jake is a single person whose taxable income is $20,000 a year. What is his average tax rate in 2012?

Quizplus · Accepted Answer

The average tax rate is calculated by dividing the total tax paid by the taxable income. Assuming the tax brackets for 2012, Jake's income would fall into the 10% and 15% brackets. The average tax rate would be a weighted average of these rates, resulting in approximately 12.5%.

Table 12-9 United States Income Tax Rates for a Single Individual, 2012