Do the Math 46 How Your Income Is Really Taxed Victoria Bass

Do the Math 4-6
How Your Income Is Really Taxed

Victoria Bassett is from Eau Claire, Wisconsin and she has a $78,500 gross income. 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.

Solution

The tax to be paid by her is

(78500-37651)*0.25 = 10212.25

(37650-9276)*0.15 = 4256.10

9276*0.1 = 927.60

Total tax paid . = 15395.95

Average tax rate is 15395.96/78500 = 19.61%