Question

6. Last year, a school principal had a gross income of $88,000. She is filing her federal income tax return with the Single filing status, and after taking into account her standard deduction of $5700 and a $3650 exemption for herself, her taxable income came out to be $78,650. Using the table below, she wants to calculate how much of the $88,000 she'll have left over after paying federal income tax. (4 points: Part I - 1 point; Part II - 1 point; Part III - 1 point; Part IV - 1 point) Single Taxable income is over But not over The tax is Plus Of the amount over $0 $8,350 $0.00 10% $0 $8,350 $33,950 $835.00 15% $8,350 $33,950 $82,250 $4,675.00 25% $33,950 $82,250 $171,550 $16,750.00 28% $82,250 $171,550 $372,950 $41,754.00 33% $171,550 $372,950 $108,216.00 35% $372,950 Part I: Subtract the appropriate amount in the rightmost column of the table from the school principal's taxable income. What do you get? Part II: Multiply the result from Part I by the appropriate percentage from the table. Now what do you have? Part III: Add the appropriate amount from the middle column of the table to the result from Part II. How much does the school principal owe in federal income tax?Part IV: How much of the school principal's gross income of $88,000 will she have left over after paying federal income tax?

Answer 1

Tax Calculation and Deduction

School Principal's Federal Income Tax Calculation

Here is the math in simple steps:

1. Taxable income: $78,650

2. Subtract tax bracket amount: $78,650 - $33,950 = $44,700

3. Multiply by tax rate: $44,700 x 0.25 = $11,175

4. Add tax bracket tax amount: $11,175 + $4,675 = $15,850

5. Gross income: $88,000

6. Subtract taxes paid: $88,000 - $15,850 = $72,150

So in short:

Taxable income: $78,650

Taxes paid: $15,850

Gross income: $88,000

Left over after taxes: $72,150

claudeAI

**** in real life

its like 50% in taxes if your single

& 40% if you're married