Question

James is single and had taxable income of $103,000 in 2019. His tax is:

a.$32,960.00.
b.$22,660.00.
c.$18,894.50.
d.$36,050.00.
e.$24,720.00.

Answer 1

To calculate James' tax, we need to know the tax rates for different income ranges. The tax rates for a single taxpayer range from 10% to 35%, depending on income. James falls into the 24% tax bracket, and his tax is $24,720. Option e.

Step-by-step explanation:

To calculate James' tax, we need to know the tax rates for different income ranges. The tax rates for a single taxpayer range from 10% to 35%, depending on income. Let's find out which tax bracket James falls into:

1. Income up to $9,875 is taxed at 10%
2. Income between $9,876 and $40,125 is taxed at 12%
3. Income between $40,126 and $85,525 is taxed at 22%
4. Income between $85,526 and $163,300 is taxed at 24%
5. Income between $163,301 and $207,350 is taxed at 32%
6. Income between $207,351 and $518,400 is taxed at 35%

Since James had a taxable income of $103,000, he falls into the 24% tax bracket. To calculate his tax, we multiply his taxable income by the tax rate: $103,000 x 0.24 = $24,720. Option e.