Question

If Owen and Eliza had a combined taxable income of $68,200 and filed their federal income tax return with the Married Filing Jointly filing status, how much does the table below say that they should pay in federal income taxes.

a. 9350.00
b. 26,325.00
c. 16,975.00
d. 9425.00

Answer 1

9425

D

Explanation:

They are in the third tax bracket down. That means that their joint income is over 67900 but less than 137050.

The base rate is 9350. But they are 68200 - 67900 = 300 over the minimum.

So 25% of that 300 is also to be paid to the government 25/100 * 300 = 75 dollars

Now they must pay 9350 + 75 = 9425

Answer D