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Jamie is single. In 2019, she reported $119,000 of taxable income, including a long-term capital gain of $6.900 What is her gross tax liability, rounded to the nearest whole dollar amount?

Multiple Choice
O $22.114
O $17,850
O $21,364
O $22,849

User Maggy
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1 Answer

3 votes

Final answer:

Without the specific 2019 tax brackets for ordinary income and long-term capital gains, we cannot accurately determine Jamie's gross tax liability or choose the correct multiple choice answer.

Step-by-step explanation:

Calculating Gross Tax Liability

To solve the mathematical problem of determining Jamie's gross tax liability, we first need to look at the marginal tax rates that apply to the different portions of her income. Since the question provides income for the year 2019, we will use the brackets for that tax year. Assume there are lower rates for capital gains, and differentiate between ordinary income and capital gain.
Given that Jamie's taxable income is $119,000 and includes a long-term capital gain of $6,900, her ordinary income is $119,000 - $6,900 = $112,100. Long-term capital gains are typically taxed at 0%, 15%, or 20% depending on the income bracket, but ordinary income can be taxed at rates from 10% to 37% for the year 2019.

Without the specific tax brackets and rates for ordinary income and capital gains for 2019, we cannot calculate the exact taxpayer's liability. However, we understand that to calculate the liability, one must apply the specific percentage allowed by the tax code for each portion of income. Both ordinary income and capital gains would be calculated separately based on their respective rates, and then added together to find the gross tax liability.

Unfortunately, without the tax brackets information, we cannot provide any of the multiple choice answers as a correct response. The answer would require knowing the exact tax rates and the cutoffs for different income levels, which change yearly and must be looked up in IRS publications or tax software would be needed to calculate the precise tax owed.

User Ostad
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