Question

Kathy makes $66,000 per year, and she pays a net federal income tax rate of 18.85%. How much should Kathy expect to pay in taxes every year?

Option 1: $78,530
Option 2: $12,441
Option 3: $10,481
Option 4: $53,559

Answer 1

Kathy should expect to pay $12,441 in taxes every year.

Step-by-step explanation:

To calculate Kathy's federal income tax, we need to multiply her annual income by her net federal income tax rate. Kathy's annual income is $66,000 and her net federal income tax rate is 18.85%

So, the amount Kathy should expect to pay in taxes every year is $66,000 * 0.1885 = $12,441.

Therefore, Option 2: $12,441 is the correct answer.