Question

Gita is a single taxpayer earning $50,000 in wages this year.

In addition, she received $750 in nonqualified dividends and $2,500 in capital gains from a stock she held for 10 months.

Use the following tables to complete the statement.


Single Taxpayers: Income Brackets

Tax Rate Income Bracket

10% 0 to 9,525

12% 9,526 to 38,700

22% 38,701 to 82,500

24% 82,501 to 157,500

32% 157,501 to 200,000

35% 200,001 to 500,000

37% > 500,000

Single Taxpayers: Qualified Dividends and Long-Term Capital Gains

Tax Rate Income Bracket

0% 0 to 38,600

15% 38,601 to 425,800

20% > 425,800

Gita must pay $ (blank) in taxes on her investment income.

Answer 1

$715

Explanation:

Answer 2

Gita must pay $ 487.50 in taxes on her investment income

Explanation:

Without mincing words Gita falls into income tax brackets of $38,601 and $425,800 from qualified dividends and long-term capital gains perspective since he had wages of $50,000 and other income totaling $3,250($2500+$750)

As a result,the taxes on her investment income of $3,250 is 15% of the investment income.

investment income taxes=$3,250*15%=$ 487.50