Harold, a single taxpayer, has $30,000 of ordinary income after the standard deduction, and $10,000 in long-term

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Harold, a single taxpayer, has $30,000 of ordinary income after the standard deduction, and $10,000 in long-term capital gains, for total taxable income of $40,000. For 2022, single taxpayers pay 0 percent on long-term gains up to $41,675. Assuming a tax of $3,398 on the $30,000 of ordinary income, what is Harold’s total income tax?

a. $3,404

b. $3,398

c. $1,500

d. $4,094

e. $4,898

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Income Tax Fundamentals 2023

ISBN: 9780357719527

41st Edition

Authors: Gerald E. Whittenburg, Steven Gill

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