For 2013, Moira Walsh had taxable income of $94,600. Moira files as a single tax

Question

For 2013, Moira Walsh had taxable income of $94,600. Moira files as a single taxpayer. Her tax rates for 2013 are: 10% on the first 8,925 of taxable income 15% of the amount over $8,926 through to $36,250 of taxable income, 25% on the amount over $36,250 through to $87,850 of taxable income, 28% on the amount over $87,850 through to $183,250 of taxable income, 33% on the amount over $183,250 through to $398,350 of taxable income, 35% on the amount over $398,350 through to $400,000 of taxable income 39.6% on income in excess of $400,000.

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Explanation / Answer

Taxable Income 94600 If Taxable Income Is: The Tax Is: SO - $8,925 10% of the taxable income $8,926 - $36,250 $892.50 + 15% of the excess over $8,925 $36,251 - $87,850 $4,991.25 + 25% of the excess over $36,250 $87,851 -$183,250 $17,891.25 + 28% of the excess over $87,850 It falls in that section $183,251 -$398,350 $44,603.25 + 33% of the excess over $183,250 $398,351 - $400,000 $115,586.25 + 35% of the excess over $398,350 $400,001 + $116,163.75 + 39.6% of the excess over $400,000 Tax will be 17891.25+28%*(94600-87850) $                                                                                     19,781.25

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