Brittney, the solutiuon is exactly the same to the case I solved thirty minutes ago:
Step 1: You need to confim what is the taxable income, and what are the tax braquets for calculating the income tax for last year.
• Taxable income = $ 15,000
,
• 1st bracket = 15% (0.15) for the first $ 7,000
,
• 2nd bracket = 19% (0.19) for the amount over $ 7,000
Step 2: Now, we calculate the 1st and 2nd bracket, this way:
1st bracket = 0.15 * 7,000
1st bracket = 1,050
For the 2nd bracket, you need to subtract 7,000 from the taxable income.
2nd bracket = 0.19 * (15,000 - 7,000)
2nd bracket = 0.19 * 8,000
2nd bracket = 1,520
Step 3: Finally, for calculating the total income tax, we add up the 1st bracket amount and the 2nd bracket.
Income tax for last year = 1st bracket + 2nd bracket
Income tax for last year = 1,050 + 1,520
Income tax for last year = 2,570
Justin will have to pay $ 2,570 in income tax