Question

Alain Mire files a single tax return and has adjusted gross income of $314,000. His net investment income is $43,000. What is the additional tax that Alain will pay on his net investment income for the year

Answer 1

$1,634

Step-by-step explanation:

The computation of the additional tax to be paid is shown below:

Additional tax is

= Tax rate × net investment income

= 0.038 × $43,000

= $1,634

We simply multiplied the tax rate with the net investment income in order to determine the additional tax