Question

Tim Tradesman had a taxable income of $82,500. He figured his tax from the table.

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1. Find his earned income level.
2. Enter the base amount. = $ ______
3. Find the amount over $ ______ =$______
4. Multiply line 3 by _____ % = $ ______
5. Add Lines 2 and 4 = $ ______

Answer 1

To arrive at the tax owed by Tim Tradesman with a taxable income of $82,500, follow the tax table's guidelines by identifying the corresponding income level, determining the base amount and amount over, calculating the tax on the excess by applying the given rate, and summing the base amount and calculated tax.

Step-by-step explanation:

In the scenario provided where Tim Tradesman has a taxable income of $82,500, we can calculate his taxes owed using a hypothetical tax table. First, we need to find the earned income level that corresponds to Tim's taxable income, after which we will identify the base tax amount and the amount over the threshold for that income level. Then, we will multiply the amount over by the specified percentage rate and finally add the base tax amount to the product to get the total tax owed.

Example Calculation:

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• Find the earned income level on the table that corresponds to Tim's income.
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• Enter the base amount from that row of the table.
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• Subtract the threshold income from Tim's taxable income to find the amount over.
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• Multiply the amount over by the given percentage rate.
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• Add the base amount to the result of the multiplication to calculate total tax.

Answer 2

His earned income level are as follows.

The base amount is $14,138.50

The amount over $62,450 = $82,500 - $62,450 =$20,050

The amount of tax on the third $20,050 is given by 31% of $20,050 = 0.31 x $20,050 = $6,215.5
(i.e. Multiply line 3 by 31% = $6,215.5)

Total tax = $ 14,138.50 + $6,215.50 = $20,354
(i.e. Add lines 2 and 4 = $20,354)