What is the tax liability for an individual with $48,000 of income if the tax rate...

What is the tax liability for an individual with $48,000 of income if the tax rate is 15% on income up to $25,350 and 28% on income over $25,350?

A. $13,440.00

B. $13,104.00

C. $10,495.50

D. $10,144.50

Solutions

Expert Solution

Tax liability upto 25350= 25350*15%=3802.5

Tax liability over 25350 till 48000 =(48000-25350)*28%=6342

Hence total tax liability =3802.5+6342=10144.5

Hence option d is correct, i.e. Tax liability of 10144.5

All other options are incorrect because of the above stated calculation.

jeff jeffy answered 2 years ago

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