In: Finance
Using the following table, calculate the taxes for an individual with taxable income of $61,000.
10 | % | Up to $10,100 | |
15 | % | $10,100–$42,500 | |
25 | % | $42,500–$99,600 | |
28 | % | $99,600–$198,400 | |
33 | % | $198,400–$411,150 | |
35 | % | Over $411,150 | |
Calculation for taxes:
Individual Taxable Income: $61000
Income | Rate | Tax ($) |
Upto first 10100 | 10% | 1010 |
10100 - 42500 i.e. covering 32400 of remaining income | 15% | 4860 |
42500 - 99600 (in this case taxable income will be 61000-42500=18500 as 61000 is covered in this slot) | 25% | 4625 |
Total amount of Tax | 10495 |