Question

Mr. Vasquez, a single adult, earned $40,000 in taxable income last year. Use the rate table below to calculate how much he must pay in income taxes?

2013 U.S. Federal Income Tax Rates for Single Adults

10% on taxable income from $0 to $8,925, plus
15% on taxable income over $8,925 to $36,250, plus
25% on taxable income over $36,250 to $87,850, plus
28% on taxable income over $87,850 to $183,250, plus
33% on taxable income over $183,250 to $398,350, plus
35% on taxable income over $398,350 to $400,000, plus
39.6% on taxable income over $400,000.




$10,000

$5928.75

$20,000

$17,890.50

Answer 1

Because he earned $40,000 he will have to pay 25%.

40,000 * 25%

25/100 = 0.25

40,000 * 0.25 = 10,000

He will have to pay $10,000 in income taxes.

Answer 2

Answer: He must pay $10,000 in income taxes.

Explanation:

Hi, to answer this question we have to analyze the rate table find an interval where the amount earned is included:

Analyzing:

25% on taxable income over $36,250 to $87,850, plus

Our percentage is 25% because $36, 250 < $40,000 < $87,850

Now, we have to calculate the amount by multiplying Mr.Vasquez earnings ($40,000) by the percentage expressed in decimals ( 25/100 = 0.25)

Mathematically speaking

40,000x 0.25 = $10,000