Sure, let’s go through the steps to determine the amount of taxable income in the 12% tax bracket on a [tex]$30,000 salary, given the standard deduction and tax rates.
1. Calculate the Taxable Income:
- Start with the salary: $[/tex]30,000.
- Subtract the standard deduction of [tex]$12,200.
- So, the taxable income is:
\[
30,000 - 12,200 = 17,800 \text{ dollars}
\]
2. Determine Tax in the 10% Bracket:
- The first $[/tex]9700 of the taxable income is taxed at 10%.
- Calculate the tax for this portion:
[tex]\[
9,700 \times 0.10 = 970 \text{ dollars}
\][/tex]
3. Determine Remaining Taxable Income for the 12% Bracket:
- Since [tex]$9,700 is already taxed at 10%, subtract this from the total taxable income to find the portion in the 12% tax bracket.
- So, the remaining taxable income is:
\[
17,800 - 9,700 = 8,100 \text{ dollars}
\]
- This $[/tex]8,100 is now in the 12% tax bracket.
4. Calculate Tax for the 12% Bracket:
- Calculate the tax for the remaining [tex]$8,100:
\[
8,100 \times 0.12 = 972 \text{ dollars}
\]
Therefore, the amount of taxable income in the 12% tax bracket is $[/tex]8,100, and the tax on it, given the 12% rate, is $972.
