Question

Use the marginal tax rate chart to answer the question.

Marginal Tax Rate Chart
Tax Bracket Marginal Tax Rate
$0–$10,275 10%
$10,276–$41,175 12%
$41,176–$89,075 22%
$89,076–$170,050 24%
$170,051–$215,950 32%
$215,951–$539,900 35%
> $539,901 37%


Determine the amount of taxes owed on a taxable income of $38,520.

Answer 1

To determine taxes owed on a taxable income of $38,520, find the tax bracket that includes this income and multiply it by the corresponding marginal tax rate of 12%.

Step-by-step explanation:

To determine the amount of taxes owed on a taxable income of $38,520 using the given marginal tax rate chart, we need to find the tax bracket that includes this income and calculate the tax accordingly.

In this case, $38,520 falls within the tax bracket of $10,276–$41,175, which has a marginal tax rate of 12%.

To calculate the taxes owed, we can multiply $38,520 by 0.12 (the decimal equivalent of 12%). The result is $4,622.40. Therefore, the amount of taxes owed on a taxable income of $38,520 is $4,622.40.

Answer 2

4,416.90

Step-by-step explanation:

12% tax bracket: $38,520 - 10,725 = 27795(0.12) = 3335.4

1027.50+3335.4 = 4416.90