To determine how much income tax Julie will pay on her [tex]$\$[/tex]50,000[tex]$ income using the federal tax brackets, let's go through each bracket step by step and calculate the tax she owes for each portion of her income.
1. First Bracket:
- Tax Rate: 10%
- Income Range: $[/tex]\[tex]$0 - \$[/tex]9,225[tex]$
- Julie's income within this bracket is $[/tex]\[tex]$9,225$[/tex].
- Tax Calculation: [tex]$10 \%$[/tex] of [tex]$\$[/tex]9,225[tex]$ = $[/tex]0.10 \times 9,225 = \[tex]$922.50$[/tex]
2. Second Bracket:
- Tax Rate: 15%
- Income Range: [tex]$\$[/tex]9,226 - \[tex]$37,450$[/tex]
- Julie's income within this bracket is [tex]$\$[/tex]37,450 - \[tex]$9,225 = \$[/tex]28,225[tex]$.
- Tax Calculation: $[/tex]15 \%[tex]$ of $[/tex]\[tex]$28,225$[/tex] = [tex]$0.15 \times 28,225 = \$[/tex]4,233.75[tex]$
3. Third Bracket:
- Tax Rate: 25%
- Income Range: $[/tex]\[tex]$37,451 - \$[/tex]90,750[tex]$
- Julie's income within this bracket is $[/tex]\[tex]$50,000 - \$[/tex]37,450 = \[tex]$12,550$[/tex].
- Tax Calculation: [tex]$25 \%$[/tex] of [tex]$\$[/tex]12,550[tex]$ = $[/tex]0.25 \times 12,550 = \[tex]$3,137.50$[/tex]
Adding it all together:
[tex]\[
\text{Total Tax} = \$922.50 (\text{from first bracket}) + \$4,233.75 (\text{from second bracket}) + \$3,137.50 (\text{from third bracket})
\][/tex]
[tex]\[
\text{Total Tax} = \$922.50 + \$4,233.75 + \$3,137.50 = \$8,293.75
\][/tex]
Therefore, the amount of income tax Julie will pay this year is \[tex]$8,293.75.
The closest answer to our calculations is:
A. \$[/tex]8,293.85
