Question

A person filing his federal income tax return with the Single filing status had a taxable income of $168,050. According to the table below, how much of that income will he have left over after paying his federal income tax.

A. $144,026.00
B. $24,024.00
C. $127,276.00
D. $40,774.00

Answer 1

The correct option is: C. $127,276.00

Explanation:

The amount of taxable income is $168,050

So, the taxable income is in the range 82,250-171,550.

That means, there will be $16,750 fixed tax and additional 28% tax on the amount over 82,250.

So, the amount over 82,250 is:
`\$(168050-82250)= \$85800`

Thus, the additional tax
`=(\$85800*0.28)=\$24024`

So, the total federal income tax will be:
`\$16750+\$24024=\$40774`

Thus, the income that he will have left over after paying his federal income tax
`=\$168050-\$40774= \$127276`