Question

Linda is a qualifying widow in 2018. In 2018, she reports $80,000 of taxable income (all ordinary). What is her gross tax liability using the tax rate schedules? (Tax rate schedule)

Answer 1

The correct answer to the following question is $9479 .

Step-by-step explanation:

The taxable income ( ordinary ) of Linda in year 2018 is $80,000.

Now as per 2018 tax schedule Linda will have to pay $8907 and since her taxable income is above $77,400, that means she will have to pay 22% tax on the difference between $80,000 and $77,400, so therefore her tax liability would be -

$8907 + 22% x $2260 ( $80,000 - $77,400 )

= $8907 + $572

= $9479