How Your Income Is Really Taxed

Victoria Bassett is from Eau Claire, Wisconsin and she has a $62,500 gross income in 2016. What amount of taxes on a gross income will she pay? (Hint: Use Table 4-1.) Round your answer for tax liability to the nearest cent, answer for an average tax rate to two decimal places and answer for a marginal tax rate to the nearest whole number. She paid ____$ in taxes on a gross income. An average tax rate would be ____ percent on gross income. A marginal tax rate would be____ percent.

Table 4-2 Tax Rate Schedules DO IT IN CLASS Single Individuals If taxable income is over- The tax is But not over $ 9,275 $ 37,650 $ 91,150 $190,150 $413,350 $415,050 No limit 10% of the taxable income $927.50 plus 15% of the amount over $9,275 $5,183.75 plus 25% of the amount over $37,650 $18,558.75 plus 28% of the amount over $91,150 $46.278.75 plus 33% of the amount over $190,150 $119,934.75 plus 35% of the amount over 5413,350 $120,529.75 plus 39.6% of the amount over $415,050 $9276 $ 37,651 $ 91.151 $190,151 5413,351 Over $415.050 Married couples Filing Jointly If taxable income is over- 50 $ 18,551 $ 75,301 $151.901 $231,451 5413.351 Over $466,950 But not over $ 18,550 5151.900 5231,450 $413,350 $466,950 No limit The tax is- 10% of the taxable income $1855 plus 15% of the amount over $18,550 $10.367.50 plus 25% of the amount over $75,300 $29,517.50 plus 28% of the amount over $151,900 $51,791.50 plus 33% of the amount over $231,450 $111,818,50 plus 35% of the amount over $413,350 $130,578.50 plus 39.6% of the amount over $466,950