Question

Joe's taxable income is $67,825. Use this tax schedule to calculate the total amount he owes in taxes.

If taxable income is over-- But not over-- The tax is:
$0 $7,825 10 percent of the amount over $0
$7,825 $31,850 $782.50 plus 15 percent of the amount over 7,825
$31,850 $77,100 $4,386.25 plus 25 percent of the amount over 31,850
$77,100 $160,850 $15,698.75 plus 28 percent of the amount over 77,100
$160,850 $349,700 $39,148.75 plus 33 percent of the amount over 160,850
$349,700 no limit $101,469.25 plus 35 percent of the amount over 349,700

Answer 1

notice how 67825 falls within the bracket

"$31,850-$77,100 --> $4,386.25 plus 25 percent of the amount over 31,850"
so he has a flat amount of 4386.25
and 25% of "the amount over 31850" which is just 0.25(67825 - 31850)

add the two parts of the tax together