Maureen Smith is a single individual. She claims one exemption of $4,000 for her
ID: 2620565 • Letter: M
Question
Maureen Smith is a single individual. She claims one exemption of $4,000 for herself and claims a standard deduction of $6,300. Her salary for the year was $163,550. Assume the following tax table is applicable.
?
Single Individuals
??
?
If Your Taxable
Income Is
You Pay This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base
Average Tax
Rate at
Top of Bracket
?
What is her average tax rate?
?
Question 38 options:
?18.31%
19.02%
?19.96%
?23.48%
24.89%
?
If Your Taxable
Income Is
You Pay This
Amount on the
Base of the Bracket
Plus This Percentage
on the Excess over the
Base
Average Tax
Rate at
Top of Bracket
Up to $9,225 $ 0 10.0% 10.0% $9,225-$37,450 922.50 15.0 13.8 $37,450-$90,750 5,156.25 25.0 20.4 $90,750-$189,750 18,481.25 28.0 24.3 $189,750-$411,500 46,075.25 33.0 29.0 $411,500-$413,200 119,401.25 35.0 29.0 Over $413,200 119,996.25 39.6 39.6Explanation / Answer
Option.D) 23.48%
Taxable income =$ 153250
Tax= $18481.25+($153250-$90750)*28%= $35981.25
Average Tax rate= $35981.25/$153250= 23.48%
Thanks