Reader Correct, this is commonly misunderstood. If you look at the different marginal tax rates, you will notice that income earned at lower tax brackets is taxed at lower rates. How much income tax would Jamie pay? (Round to the nearest dollar.) Marginal Tax Rates Rate on Taxable Income $953 Reader Not quite. Remember that not all of her income is taxed at 12% How much income tax would Jamie pay? (Round to the nearest dollar) Enter a response then click Submit below Single Taxpayers Married Taxpayers Filing Jointly Head of Households Standard Deduction $12.400 10% 12 22 $40,126-$85,525 Up to $9,875 $9,876-$40,125 $24,800 Up to $19,750 $19,751-$80,250 $80.251-$171,050 Up to $14,100 $14,101-$53,700 $53,701-$85,500 $18,650 24 $85,526-$163,300 $171.051-$326,600 33 $163,301 $207,350 $326,601-$414,700 $85,501-$163,300 $163,301-$207,350 35 $207,351-$518,400 $414,701-$622,050 $207,351-$518.400 37 $518,401- $622,051+ $518,401+ Assets: Monthly Expenses: Checking Account $1,400 Rent obligation $280 Savings Account (Interest earned last year: $ 142) $7,100 Utilities $100 Emergency fund savings account $3,400 Food $170 (Interest earned last year: $ 68) IRA balance ($ 320 contribution $359 Gas/maintenance $100 made last year) Car $4,000 Credit card payment $0 Savings: Liabilities: Regular savings monthly deposit $170 Student loan $5,600 Credit card balance (Interest paid $410 last year: $ 25) Rainy day savings monthly deposit $50 Entertainment: Income: Gross monthly salary $2,300 Cake decorating class $45 Movies with friends $40