Using the provided table, calculate the effective tax rate for a single taxpayer with a taxable income of $52,000.
Single Taxpayers: Income Brackets
Tax Rate Income Bracket Tax Owed
10% 0 to 9,525 10% of taxable income
12% 9,526 to 38,700 $952.50 plus 12% of the excess over $9,525
22% 38,701 to 82,500 $4,453.50 plus 22% of the excess over $38,700
24% 82,501 to 157,500 $14,089.50 plus 24% of the excess over $82,500
32% 157,501 to 200,000 $32,089.50 plus 32% of the excess over $157,500
35% 200,001 to 500,000 $45,689.50 plus 35% of the excess over $200,000
37% > 500,000 $150,689.50 plus 37% of the excess over $500,000
A.
12.0%
B.
13.9%
C.
14.2%
D.
22.0%

In order to determine the effective tax rate of a taxpayer with taxable income of $52,000,the starting point to determine how much in taxes the taxpayer pays as shown below:

First tax bracket=$9,525*10%=$952.5

Second tax bracket=$952.50+(12%*($38700-$9,525))

=$952.50+$3501

Third tax bracket(where the taxpayer belongs)=4453.5 +(22%*($52,000-$38,700))

third tax bracket tax=4453.5+$2926 =$7379.5

Since the total tax payable of $7379.5 is now computed,

effective tax rate=tax paid/taxable income=7379.5/52000 =14.2%

lisabarben9 lisabarben9 · Answer 2 · 2020-10-25T15:10:19+01:00

lisabarben9 lisabarben9

25-10-2020

Answer:

Option C is correct ,14.2%

Step-by-step explanation: Got it right on PLATO

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