Robert is a single taxpayer who has AGI of $145,000 in 2014; his taxable income is $122,000. What is his federal tax liability for 2014?

Question

Quizplus · Accepted Answer

For 2014, the federal tax brackets for a single filer are: 10% on income up to $9,075, 15% on income over $9,075 up to $36,900, 25% on income over $36,900 up to $89,350, 28% on income over $89,350 up to $186,350. Robert's taxable income of $122,000 falls into the 28% bracket. Calculating the tax: 10% of $9,075, 15% of ($36,900 - $9,075), 25% of ($89,350 - $36,900), and 28% of ($122,000 - $89,350). Adding these amounts gives a total tax liability of $27,336.

Robert Is a Single Taxpayer Who Has AGI of $145,000