Question

What is the income tax Felipe must pay for last year, given that he made $15,000 in taxable income, and the income tax rate is 15% for the first $8,000 plus 18% for the amount over $8,000?

A. $2,000
B. $2,460
C. $1,800
D. $1,500

Answer 1

Felipe must pay $2,460 in income tax for last year, given that he made $15,000 in taxable income with a tax rate of 15% for the first $8,000 plus 18% for the amount over $8,000.

Step-by-step explanation:

To calculate Felipe's income tax, we need to break down his income into two parts: the portion that falls within the 15% tax bracket and the portion that falls within the 18% tax bracket.

First, we calculate the tax on the income that falls within the 15% tax bracket, which is $8,000. So, the tax on this portion is 15% of $8,000, which is $1,200.

Next, we calculate the tax on the remaining portion of Felipe's income, which is $15,000 - $8,000 = $7,000. The tax rate for this portion is 18%, so the tax is 18% of $7,000, which is $1,260.

Finally, we add up the two tax amounts to find Felipe's total income tax. $1,200 + $1,260 = $2,460. Therefore, Felipe must pay $2,460 in income tax for last year.