Use the following tax rates and income brackets for 2015 to answer the question.

Question

Use the following tax rates and income brackets for 2015 to answer the question. Tax Rates 10% 15% 25% 28% 33% 35% Individual Returns $0 to $907:5 $9076 to 36900 $36901 to 89350 $89351 to 186350 $186351 to 405100 $405101 to $406750 Joint Returns S0 to 18150 S18151 to 73800 S73801 to 148850 $148851 to 226850 S226851 to 405100 S405101 to 457600 In 2015, John and Nicole earned a combined taxable income of $148,800 from employment plus $1,000 in long term capital gains and they file a joint tax return. What is their total federal income tax? Round to the nearest dollar

Explanation / Answer

john and Nicole have joint income, So applicable tax bracket rate is 25%. Applicable tax bracket on long term capital gain is 15% on those whose tax bracket rate is 25% to 35%.

Total federal tax = $1,48,800 * 25% + $1,000 * 15%

= $37,200 + $150

= $37,350.

The federal tax is paid by the john and Nicole is amounting to $37,350.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.