Question

12th grade math (Federal Income Taxes and Piecewise Functions MC)

Use the marginal tax rate chart to answer the question.


Marginal Tax Rate Chart

Tax Bracket
Marginal Tax Rate

$0–$10,275

10%

$10,276–$41,175

12%

$41,176–$89,075

22%

$89,076–$170,050

24%

$170,051–$215,950

32%

$215,951–$539,900

35%

> $539,901

37%



Determine the effective tax rate for a taxable income of $63,425. Round the final answer to the nearest hundredth.
10%
14.67%
15.18%
22%

Answer 1

$63,425 falls under the 22% marginal tax rate bracket. Which means that includes the 10% and 12%. In order to find the taxable money you have to subtract: $41,175 - $10,275 = $30,900. And for the 22% bracket, to find the taxable amount you subtract the taxable income by the max amount of the 12% bracket. $63,425 - $41,175 = $22,250.

Answer 2

So now u have:
10% : $10,275
12% : $30,900
22% : $22,250

For ur taxable amounts. And then you multiply those by the tax rates.

$1,027.5
$3,708.0
$4895.0

Now u add those up to get : $9,630.5 (which is the total tax that is owed)

To find the effective tax rate you divide the total tax owed by taxable income and then multiply by 100.

$9,630.5/$63,425 = 0.1518407568 * 100 = 15.18407568% = 15.18%

Answer 3

thx guys

Answer 4

idk