Question

If an individual's adjusted gross income (AGI) is $60,000, they have $5,000 in

itemized deductions, $7,500 in standard deductions, and $2,500 in tax credits.
How much will be paid to the IRS if the income tax rate table is as follows:

Answer 1

To calculate the amount paid to the IRS, find the taxable income and use the income tax rate table. In this case, the taxable income is $47,500.

Step-by-step explanation:

The amount to be paid to the IRS can be calculated by finding the taxable income and using the income tax rate table. In this case, the taxable income can be calculated as follows:

Taxable income = AGI - (Itemized deductions + Standard deductions)

= $60,000 - ($5,000 + $7,500)

= $47,500

Once the taxable income is known, it can be used to find the amount to be paid to the IRS from the income tax rate table. The specific tax amount can be found by locating the taxable income in the table and applying the corresponding tax rate. The tax amount is calculated as follows:

Tax amount = Base tax amount + (Tax rate × (Taxable income - Taxable income range start))

In this case, since the taxable income is $47,500, the tax amount can be calculated using the appropriate tax range in the table.