To determine how much tax you owe with a taxable income of [tex]$10,000, let's break down the income into the respective tax brackets provided in the table and apply the corresponding tax rates.
First, we need to understand the brackets and the applicable tax rates for a single filer:
1. Up to $[/tex]9,525: Tax rate is 10%
2. [tex]$9,525 to $[/tex]38,700: Tax rate is 12%
Given the taxable income is [tex]$10,000, the income falls into the first two brackets. Here's the step-by-step calculation:
1. Calculate the tax for income up to $[/tex]9,525:
- The first [tex]$9,525 is taxed at 10%.
- Tax on this amount: $[/tex]9,525 * 0.10 = [tex]$952.50
2. Calculate the tax for the remaining income:
- The remaining income is $[/tex]10,000 - [tex]$9,525 = $[/tex]475.
- This [tex]$475 falls into the next bracket, which is taxed at 12%.
- Tax on this amount: $[/tex]475 * 0.12 = [tex]$57
3. Add the taxes from both brackets to find the total tax owed:
- Tax owed in the first bracket: $[/tex]952.50
- Tax owed in the second bracket: [tex]$57
- Total tax owed: $[/tex]952.50 + [tex]$57 = $[/tex]1,009.50
So, the amount of tax you owe on a taxable income of [tex]$10,000 is $[/tex]\[tex]$1,009.50$[/tex].
Thus, the correct answer is:
c.) \$1,009.50
