Question

There is no tax on income up to $22,000. Income over $22.000 and up to $72,000 is taxed at 12%. Income over $72,000 is taxed at 21%. Determine how much tax is to be paid on an income of $56.000.​

Answer 1

The total tax to be paid on an income of $56,000 is $4,800.

Step-by-step explanation:

To determine the amount of tax to be paid on an income of $56,000, we will break down the income into the different tax brackets and calculate the tax for each bracket.

1. Income up to $22,000 is tax-free, so there is no tax on the first $22,000.
2. Income over $22,000 and up to $72,000 is taxed at 12%, so we calculate the tax on the portion of income between $22,000 and $56,000 as follows: $(56,000 - 22,000) * 0.12 = $4,800.
3. Income over $72,000 is taxed at 21%. Since our income is below $72,000, we don't need to calculate this tax.

Therefore, the total tax to be paid on an income of $56,000 is $4,800.