To determine Priscilla's federal income tax, we'll use the given tax brackets for married couples filing jointly and calculate the tax step-by-step according to her income of [tex]$122,300.00.
1. Identify the applicable tax bracket:
- Priscilla's income of $[/tex]122,300 falls within the range of \[tex]$78,951.00 to \$[/tex]168,400.00.
2. Calculate the tax due for each portion of her income according to the brackets:
- For the first \[tex]$19,400.00, the tax rate is 10%:
\[
19,400 \times 0.10 = 1,940.00
\]
- For the next portion of her income, from \$[/tex]19,401.00 to \[tex]$78,950.00, the tax rate is 12%:
\[
(78,950 - 19,400) \times 0.12 = 59,550 \times 0.12 = 7,146.00
\]
- For the remaining portion of her income, from \$[/tex]78,951.00 to \[tex]$122,300.00, the tax rate is 22%:
\[
(122,300 - 78,950) \times 0.22 = 43,350 \times 0.22 = 9,537.00
\]
3. Summing the tax calculated for each portion:
- Tax for the first \$[/tex]19,400.00: \[tex]$1,940.00
- Tax for the portion between \$[/tex]19,401.00 and \[tex]$78,950.00: \$[/tex]7,146.00
- Tax for the portion between \[tex]$78,951.00 and \$[/tex]122,300.00: \[tex]$9,537.00
Total tax due:
\[
1,940.00 + 7,146.00 + 9,537.00 = 18,623.00
\]
Therefore, the federal income tax that Priscilla owes is \$[/tex]18,623.00.
