Question

Based on the tax brackets, what’s the estimated total tax due for a single taxpayer with a taxable income of $43,500?

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
A.
$4,293.60
B.
$4,557.00
C.
$5,509.50
D.
$9,570.75

Answer 1

C. $5,509.50

Explanation:

Answer 2

C. $5,509.50

Explanation:

The computation of the estimated total tax due in case of taxable income for $43,500 is shown below:

Since in the question the income brackets and based on the income the different tax is to be charged

For $9,525, the 10% tax is charged i.e

`= \$9,525 * 10\%`

= $952.50

Upto $38,700, the 12% tax is charged i.e

`= (\$38,700 - \$9,526) * 12\%`

= $3,500.88

The remaining amount left is

`= (\$43,500 - \$38,701) * 22\%`

= $1,055.78

Now the total tax due is

= $952.50 + $3,500.88 + $1,055.78

= $5,509.16 approx i.e $5,509.50