Question

Homer and Marge are in the 28% tax bracket. Their joint taxable income is $139,450. If the first $16,050 is taxed at 10%, with the remainder at 28%, how much tax will they owe?

Answer 1

$36,157

$139,450-$16,050=123,400

123,400×28% (or .28)=34,552

16,050×10% (or .10)=1,605

34,552+1,605=$36,157