Question

Use the 2006 tax schedule for married taxpayers filing jointly below. What would be your federal income tax if your income was $170,300?

Answer 1

Federal income tax if your income is $170,300

= $37,088

Step-by-step explanation

From the tax schedule table, we can see that the tax for an earning greater than $123,700 but less than $188,450 is

$24,040 + 28% of the amount over $123,700

$170,300 is greater than $123,700 by (170,300 - 123,700) = $46,600

So, total tax is

$24,040 + 28% of the amount over $123,700

= 24,040 + (0.28 × 46,600)

= 24,040 + 13,048

= $37,088

Hope this Helps!!!