I have a current assignment on calculation of effective tax rates. I feel like I have the correct answer, but I am not completely confident in my answer. I provided the rationale for how I tried to solve the problem but wanted to see if I could get another opinion.

The information for the assignment is below.

The effective income tax rate is defined as the percentage of taxes paid in relation to a taxpayer's gross income. Calculate the effective tax rate for a person with the following profile. Your answer needs to be expressed in percentages and by rounding off to the nearest tenth (e.g., 5.8%) and inserted at the bottom of this exercise in the assigned answer space. You also need to submit information about the taxable income and the amount of taxes owed (assume that no taxes have been paid at this point).

-First, pay attention to the tax brackets. They indicate you do not pay any tax on the initial $5,500; 10% on anything above this amount but below $26,250; and 15% on taxable income above this amount.

-Second, remember that you are only allowed to apply one type of deduction (either the total of the itemized or the standardized deduction).

-Third, enter the amounts to the nearest $1.00.

Adjusted gross income (AGI) of $70,000 (assume AGI equals gross income)

Number of exemptions: one (assume $3,650/exemption)

Allowed itemized deductions:

Donations: $1,000

Mortgage interest: $6,500

State and local taxes: $500

Standardized deduction: $6,000

Total tax credits: $1,600

Tax brackets for single filers:

Between But not Over. Tax Rate

$0. $5,500 0%

$5,501 $26,250 10%

$26,251 $63,550 15%

$63,551 $132,600 27%

$132,601. $288,350. 35%

$288,351. --- 38.6%

Questions:

Taxable income (enter to nearest $1.00): __$58,350__________

Taxes owed (enter to nearest $1.00 and account for the credit as part of this amount): __$7,153__________

Effective tax rate (express as a percentage, rounding off to the nearest tenth): _10.2%___________

I based my answers off the itemized deductions. From my understanding I can choose either the itemized or standardized deduction.

For taxable income I did $70,000 - ($8,000 itemized + $3,650 one exemption) = $58,350

Taxes owed I did 15% of $58,350 to get $8,752.50. I then subtracted the tax credit of $1600 to get $7152.50 then round.

For effective tax rate I then did $7,152 divided by $70,000 = 10.2%

It seems right, but I wanted to get another opinion. I want to make sure I'm not missing something.

Thank You