Final answer:
To calculate Dina's tax liability on a $70,000 taxable income, one must use the tax rate schedule applicable for her income level, which consists of a fixed amount plus a percentage of the income that exceeds a certain threshold.
Step-by-step explanation:
Calculating Tax Liability
To calculate Dina's tax liability on her $70,000 taxable income for 2022, we would follow the steps indicated by the tax table. While the exact tax brackets for 2022 are not provided, we can use the information given to understand the methodology. If the tax rate schedule is similar to the one illustrated with a baseline dollar amount plus a percentage of the income over a threshold, then one would calculate the tax owed by adding a fixed amount to a percentage of the amount that the taxable income exceeds a specified threshold.
For instance, if Dina's taxable income falls in a bracket that requires her to pay $837.50 plus 15% of the amount over $8,375, her calculation would look as follows:
$837.50 + 0.15 × ($70,000 - $8,375)
However, since we know that higher income levels face steeper tax rates, she will likely fall into a higher bracket with a greater fixed amount and a higher percentage rate. The tax liability would be computed in a similar way, adjusting the base tax owed and the marginal tax rate according to the specific bracket her income falls into.
A higher income generally results in a higher tax liability and, as income increases, the marginal tax rate also increases. The amount of federal taxes owed depends on various factors, including adjusted gross income, deductions, and any applicable exemptions or tax credits.