2. Taxes paid for a given income level Suppose that Alex is preparing to file his taxes. He is single and currently.i lives in San Diego. Alex earned $205,000 in taxable income in 2022. He reviews the following table, which shows the [RS tax rates for a single taxpayer in 2022. The Tait.r Rate Is... On Annual Taxable Income... (Percent) Up to 510,225 10.0 From $10,225 to $41,275 12.0 From 541,??5 to $89,035 22.0 From $89,025 to $1?0,050 24.0 From Sl?0,050 to 9215,950 32.0 From $215,950 to $539,900 35.0 Over $539,900 3?.0 Based on the IRS table, Alex calculates that his marginal tax rate is V when his annual taxable income is $205,000. Alex calculates that he owes '7 in income taxes for 2022. Alex then calculates that his average tax rate is 'V , based on the annual income level and the amount of taxes he owes for 2022. After guring out what he owes in taxes in 2022, Alex decides to ask an accountant for tax advice. The accountant claims that he has found a legal wavr to shelter $4,000 of taxable income from the federal government. The maximum amount that Alex is willing to payr to learn this strategy and reduce his taxable income by $4,000 is 'V . (Hint: Sheltering some income means finding a legal way;r to avoid being Charged income tax on that income. For example, someone who has $50,000 in taxable income and shelters $10,000 pays income tax on onlyr $40,000.) Based on the IRS table, Alex calculates that his marginal tax rate is V when his annual taxable income is $205,000. Alex calculates that he owes V in income taxes for . 1D% 12% Alex then calculates that his average tax rate is V , based on th. income level and the amount of taxes he owes for 2022. 22 % After guring out what he owes in taxes in 2022, Alex decides to as 24% ountant for tax advice. The accountant claims that he has found a legal way to shelter $4,000 of taxable income from the federal governme 32% The maximum amount that Alex is willing to pay to learn this strate 35% educe his taxable income by $4,000 is V . (Hint: Sheltering Alex calculates that he owes V in income taxes for 2022. $34,641 5|] Alex then calculates that his te is V , based on the annual income level and the amount of taxes he owes for 2022. $42,051.50 After guring out what he 0 2022. Alex decides to ask an accountant for tax advice. The accountant claims that he has found a leg 544,804. 00 way to shelter $4,000 of tax. m the federal government. $45,831.50 The maximum amount that . 65 600 00 I pay to learn this strategy and reduce his taxable income by $4,000 is V . (Hint: Shelterin S , . some income means finding avoid being charged income tax on that income. For example, someone who has $50,000 in taxable inc Over $539,900 Based on the IRS table, Alex calculates that his I tax rate is V when his annual taxable income is $205,000. Alex calculates that he owes V i taxes for 2022. Alex then calculates that his average tax rate is V , based on the annual income level and the amount of taxes he owes for 2022. Alex calculates that he owes In Income taxes for 2022. $0 Alex then calculates that his average tax rate is , based on the annual income level and the amount of taxes r 2022. $880 After figuring out what he owes in taxes in 2022, Alex decides to ask an accountant for tax advice. The accountant $1,280 t he has found a legal way to shelter $4,000 of taxable income from the federal government. $4,000 The maximum amount that Alex is willing to pay to learn this strategy and reduce his taxable income by $4,000 is . (Hint: Sheltering some income means finding a legal way to avoid being charged income tax on that income. For example, someone who has $50,000 in taxable income and shelters $10,000 pays income tax on only $40,000.)