The value of the expression 4220 + 0.25(x - 30,650) is the 2006 federal income t
ID: 3099675 • Letter: T
Question
The value of the expression
4220 + 0.25(x - 30,650)
is the 2006 federal income tax for a single taxpayer with taxable income of x dollars, where x is over $30,650 but not over $74,200.
a) Simplify the expression.
b) Find the amount of tax for a single taxpayer with
taxable income of $40,000.
c) Who pays more, a married couple with a joint taxable
income of $80,000 or two single taxpayers with
taxable incomes of $40,000 each?
Explanation / Answer
A) Simplify: 4220 + 0.25(x - 30,650) 4220 + .25*x - 7662.5 (Distributed the .25). .25*x - 3442.5 (Subtracted 4220 - 7662.5) Answer: .25*x - 3442.5 B) x = $40,000 Tax = .25*(40,000) - 3442.5 = 10,000 - 3442.5 = 6557.5 Answer: $6,557.5 C) Assuming the equation given can still be used, even though $80,000 > $74,200. Two single taxpayers: See part B. Tax = $6,557.5 + $6,557.5 Tax = $13,115 Joint couple: Tax = .25*($80,000) - 3442.5 Tax = 20,000 - 3442.5 Tax = $16,557.5 Answer: Joint couple pays more, assuming the given equation is valid for their tax income.
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