Question

Amy and Ethan are married and file a joint return for 2020. Their taxable income is $192,100. The amount of their tax liability, rounded to the nearest dollar, is $ .

Answer 1

$34,264

Step-by-step explanation:

Given :

Taxable income = $192,100

The 2020 federal tax bracket for 2020 is given thus for married and filing jointly for return :

If taxable income falls within the bracket : ($171,051 to $326,600)

$29,211 plus 24% of the amount over $171,050

Hence, this applies to Ethan and Amy's taxable income of $192,100 ;

There taxable income is :

$29,211 + 24% of $(192,100 - 171,050)

$29,211 + (0.24 * $21,050)

$29,211 + $5,052

= $34,264