What is the amount of the tax liability for a single person having taxable income of $59,200? All answers should be rounded to the nearest dollar.
$8,880
$10,925
$10,931
$14,800
is it A
14,800
To determine the amount of tax liability for a single person with a taxable income of $59,200, we can use the IRS tax brackets for the year in question.
In 2021, the tax brackets for single individuals are as follows:
- 10% on taxable income up to $9,950
- 12% on taxable income between $9,951 and $40,525
- 22% on taxable income between $40,526 and $86,375
- 24% on taxable income between $86,376 and $164,925
- 32% on taxable income between $164,926 and $209,425
- 35% on taxable income between $209,426 and $523,600
- 37% on taxable income above $523,600
To calculate the tax liability, we determine how much of the income falls into each tax bracket and apply the corresponding tax rate. Let's break down $59,200 into the different brackets:
- The first $9,950 is taxed at a rate of 10%.
- The amount between $9,951 and $40,525 is taxed at a rate of 12%. In this case, it is $40,525 - $9,951 = $30,574.
- The remaining amount over $40,525 is taxed at a rate of 22%. In this case, it is $59,200 - $40,525 = $18,675.
Calculating the taxes for each bracket:
- For the first bracket, 10% of $9,950 is $995.
- For the second bracket, 12% of $30,574 is $3,688.88.
- For the third bracket, 22% of $18,675 is $4,108.50.
Now, we add up the tax amounts for each bracket: $995 + $3,688.88 + $4,108.50 = $8,792.38.
Since we need to round to the nearest dollar, the tax liability for a single person with a taxable income of $59,200 is $8,792.
Therefore, the correct answer is not option A, but rather it would be none of the given options.