Question

Fred and Wilma are in the 33% tax bracket. Their joint taxable income is $205,375. If the first $16,050 is taxed at 10%, with the remainder at 33%, how much tax will they owe?

Answer 1

$64,082.25

Explanation:

$205,375-16,050=189,325

189,325×33% (or .30)=62,477.25

16,050×10% (or .10)=1,605

1,605+62,477.25=$64,082.25