Questions: Use the 2021 marginal tax rates in the table to compute the tax owed by the person with the given filing status and taxable income single with a taxable income of 52,000. The tax owed is (Type an integer or a decimal. Round to the nearest cent as needed.)

Use the 2021 marginal tax rates in the table to compute the tax owed by the person with the given filing status and taxable income single with a taxable income of 52,000. The tax owed is (Type an integer or a decimal. Round to the nearest cent as needed.)

Transcript text: Use the 2021 marginal tax rates in the table to compute the tax owed by the person with the given filing status and taxable income single with a taxable income of $\$ 52,000$ The tax owed is \$ $\square$ (Type an integer or a decimal. Round to the nearest cent as needed.)

Solution

Solution Steps

To compute the tax owed, we need to apply the 2021 marginal tax rates to the taxable income of $52,000 for a single filer. The tax is calculated by applying the tax rate to the income within each bracket up to the total taxable income. We sum the taxes from each bracket to get the total tax owed.

Step 1: Define the Tax Brackets

The 2021 marginal tax rates for a single filer are defined as follows:

$ 10\% $ on income up to $ \$9,950 $
$ 12\% $ on income over $ \$9,950 $ up to $ \$40,525 $
$ 22\% $ on income over $ \$40,525 $ up to $ \$86,375 $

Step 2: Calculate Tax for Each Bracket

Given a taxable income of $ \$52,000 $, we calculate the tax owed in each bracket:

For the first bracket: \[ \text{Tax}_{1} = 0.10 \times 9,950 = 995 \]
For the second bracket: \[ \text{Tax}_{2} = 0.12 \times (40,525 - 9,950) = 0.12 \times 30,575 = 3,669 \]
For the third bracket: \[ \text{Tax}_{3} = 0.22 \times (52,000 - 40,525) = 0.22 \times 11,475 = 2,523.5 \]

Step 3: Sum the Taxes

Now, we sum the taxes from all applicable brackets: \[ \text{Total Tax} = \text{Tax}_{1} + \text{Tax}_{2} + \text{Tax}_{3} = 995 + 3,669 + 2,523.5 = 7187.5 \]