Wednesday, January 6, 2016

What would Sandra's tax liability be?Sandra is a single taxpayer, has taxable income of $86,937. Her tax liability is:A. $14,094B. $16,579C....

There is no way to know this answer given the information you
have provided. The reason for this is that we do not know how many tax brackets there are, what
the minimum and maximum incomes for each bracket are, or what the marginal rates in each bracket
are.


For example, let's look at what Sandra's tax liability would be
if you were using the rates for federal income tax. This year, parts of Sandra's income would be
taxed at four different rates. The first $8,500 would be taxed at 10%. The next $26,000 would be
taxed at 15%. The next $49,100 would be taxed at 25%. The remainder would be taxed at
28%.


To find her liability, you would multiply the first $8,500 by
10%, the next $26,000 by 15% and so on. You would then add all the results to get her total
liability.

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