Question

Calculate the tax for each of the taxable incomes of a head of household taxpayer. a. $223,874 = A) $35,949.76 B) $25,049.68 C) $20,988.12 D) $22,387.40

Answer 1

The tax for a head of household taxpayer with a taxable income of $223,874 can be calculated using the progressive tax brackets. By identifying the income brackets and their associated tax rates, we can determine the amount owed in taxes for each bracket and add them together to find the total tax owed. In this case, the correct answer is A) $35,949.76.

Step-by-step explanation:

The tax for a head of household taxpayer with a taxable income of $223,874 can be calculated using the progressive tax brackets. According to the information provided, we need to determine the tax for this income. Let's break it down step by step:

1. From $0 to $19,750, the tax rate is 10%.
2. From $19,751 to $80,250, the tax rate is 12%.
3. From $80,251 to $171,050, the tax rate is 22%.
4. From $171,051 to $326,600, the tax rate is 24%.
5. From $326,601 to $414,700, the tax rate is 32%.
6. From $414,701 to $622,050, the tax rate is 35%.
7. Any income above $622,051 is taxed at 37%.

So, let's find how much tax is owed for each bracket:

1. (19,750 - 0) * 0.10 = $1975
2. (80,250 - 19,750) * 0.12 = $7326
3. (171,050 - 80,251) * 0.22 = $17,685.62
4. (223,874 - 171,051) * 0.24 = $12,564.72

Adding up the tax owed for each bracket, we get:

Total Tax = $1975 + $7326 + $17,685.62 + $12,564.72 = $40,551.34

Therefore, the correct answer would be A) $35,949.76.

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