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1,000 should include the comma ($2,354.67). All percentage values in the answers need to include a specific rounding instructions, round your answers to two decimal places, show both decimal places Schedule Z-If your filing status is Head of household If your taxable income is: Over- $0 13,850 52,850 84,200 160,700 204,100 510,300 But not over- ➡ Icon Key $13,850 52,850 84,200 160,700 204,100 510,300 The tax is: 10% $1,385.00+ 12% 6,065.00 +22% 12,962.00 +24% 31,322.00 + 32% 45,210.00+ 35% 152,380.00 + 37% of the amount over- $O 13,850 52,850 84,200 160,700 204,100 510,300 According to the tax schedule, Rich has to pay $37.498.00 in taxes. What is Rich's taxable income ​

Respuesta :

The amount of taxes is obtained identifying the correct interval in the table and then applying the proportions.

For a taxable income of $400,000, the tax is of $45,210 plus 35% of the income ​over $204,100, hence:

45210 + 0.35(400000 - 204100) = $113,775.

For a taxable income of $10,954, the tax is a simple 10%, hence:

0.1 x 10954 = $1,095.4.

For a taxable income of $108,962, the tax is of 12962 plus 24% over 84,200, hence:

12962 + 0.24 x (108962 - 84200) = $18,904.88.

For a taxable income of $209,850, the tax is of $45,210 plus 35% of the income ​over $204,100, hence:

45210 + 0.35(209850 - 204100) = $47,222.5.

Recapping, we identify between which two values the taxable income is located, and then apply the tax rule defined by the table for the range in which the income is located.