Maureen Smith is a single individual.She claims one exemption of $4,000 for herself and claims a standard deduction of $6,300.Her salary for the year was $75,000.Assume the following tax table is applicable. What is her average tax rate?

Question

​Maureen Smith is a single individual.She claims one exemption of $4,000 for herself and claims a standard deduction of $6,300.Her salary for the year was $75,000.Assume the following tax table is applicable. ​  What is her average tax rate?

Quizplus · Accepted Answer

Using the tax table:
- The first $9,275 of income is taxed at 10%, which equals $927.50.
- The next $28,375 of income ($37,650 - $9,275) is taxed at 15%, which equals $4,256.25.
- The remaining $37,375 of income ($75,000 - $37,650) is taxed at 25%, which equals $9,343.75.
- Total tax paid is $14,527.50.
- Average tax rate is total tax paid divided by taxable income, which equals $14,527.50 / $75,000 = 0.1937.
- Convert to percentage, which equals 19.37%. Rounded to the nearest tenth, the answer is 19.4%. Therefore, the best choice is D.

​Maureen Smith Is a Single Individual

Maureen Smith Is a Single Individual