Question

d

Answer 1

Taxable income = $72,380.90 - $8,295.00 = $64,085.90
Look up the tax table.
Use the table on the right for joint tax filing.
Taxable income of $64,085.90 falls in the second row of the table on the right.

Answer 2

Income Tax = $1675 + ($64,085.90 - $16,750) * 0.15 = ?

Answer 3

I am getting a different number.

Answer 4

No. Why don't you do it step by step here and we can find where you are making the mistake.
Income Tax = $1675 + ($64,085.90 - $16,750) * 0.15
First, what is $64,085.90 - $16,750 ?

Answer 5

To figure out the amount of income tax they have to pay for the year, you have to look at the Married Filing Jointly 2010 Tax Brackets table. Since they have $8,295.00 in deductibles, we subtract that from 72,380.90 which gives you the taxable income of $64,085.90. This income falls in the second row of the tax table for joint filing. They have to pay $1,675 plus 15% of their taxable income over $16,750. Their taxable income over $16,750 is ($64,085.90 - $16,750) = $47,335.90. So they have to pay $1,675 + $47,335.90 * 15/100 = $1,675 + $7,100.39 = $8,775.39 in income tax.