Question

porter had a taxable income of $34,050 and filed his federal income tax return with the single filing status. using the table below, find the amount he has to pay in taxes.
single
taxable income is over | but not over | the tax is | plus | of the amount over
$0 | 8,350 | $0.00 | 10% | $0
8,350 | 33,950 | 835.00 | 15% | 8,350
33,950 | 82,250 | 4,675.00 | 25% | 33,950
82,250 | 171,550 | 16,750.00 | 28% | 82,250
171,550 | 372,950 | 41,754.00 | 33% | 171,550
372,950 | | 108,216.00 | 35% | 372,950
a. $4675.00
b. $4700.00
c. $13,162.50

Explanation:

Step1: Identify the tax bracket

Porter's taxable income is \$34,050. Looking at the "Single" tax table, we find the bracket where taxable income is over \$8,350 but not over \$33,950? Wait, no, \$34,050 is over \$33,950? Wait, no, let's check again. Wait, the brackets: first bracket: over \$0 but not over \$8,350; second: over \$8,350 but not over \$33,950; third: over \$33,950 but not over \$82,250. Wait, Porter's income is \$34,050, which is over \$33,950? Wait, no, \$34,050 is greater than \$33,950? Wait, \$33,950 is the upper limit of the second bracket. Wait, no, the second bracket is "Taxable income is over \$8,350 but not over \$33,950"? Wait, no, the table says:

First row: over \$0, but not over \$8,350

Second row: over \$8,350, but not over \$33,950

Third row: over \$33,950, but not over \$82,250

Wait, Porter's income is \$34,050, which is over \$33,950 (since 34,050 > 33,950) and less than \$82,250. Wait, no, wait the second row: "Taxable income is over \$8,350 but not over \$33,950" – so the upper limit is \$33,950. So \$34,050 is over \$33,950, so it's in the third bracket? Wait, no, maybe I misread. Wait, let's check the numbers again. The second row: "But not over" is \$33,950. So taxable income over \$8,350 but not over \$33,950. Then third row: over \$33,950 but not over \$82,250. So Porter's income is \$34,050, which is over \$33,950 (34,050 - 33,950 = 100) and under \$82,250. Wait, but wait, maybe I made a mistake. Wait, the second bracket's "but not over" is \$33,950, so income up to \$33,950 is in the second bracket. So \$34,050 is in the third bracket? Wait, no, 34,050 is just \$100 over \$33,950. Wait, but let's check the tax calculation for the second bracket first. Wait, maybe I misread the brackets. Wait, let's re-express the tax table:

For Single filers:

• If taxable income is over \$0 but not over \$8,350: tax is \$0.00 + 10% of the amount over \$0.

• If over \$8,350 but not over \$33,950: tax is \$835.00 + 15% of the amount over \$8,350.

• If over \$33,950 but not over \$82,250: tax is \$4,675.00 + 25% of the amount over \$33,950.

Ah! I see, I misread the "but not over" column. The second row: "but not over" is \$33,950, so taxable income up to \$33,950 is in the second bracket. So \$34,050 is over \$33,950, so it's in the third bracket? Wait, no, 34,050 is greater than 33,950, so it's in the third bracket. Wait, but let's calculate both ways. Wait, maybe I made a mistake. Let's check the second bracket: maximum income in second bracket is \$33,950. So income of \$33,950 would be in the second bracket. Income of \$34,050 is \$100 over \$33,950, so it's in the third bracket. Wait, but let's calculate the tax for the second bracket first, assuming maybe the problem has a typo, but no, let's do it properly.

Wait, let's check the second bracket: tax is \$835.00 + 15% of (income - \$8,350). For income \$33,950: tax would be 835 + 0.15*(33,950 - 8,350) = 835 + 0.15*25,600 = 835 + 3,840 = 4,675. Which matches the third bracket's "The tax is \$4,675.00" – wait, no, the third bracket's "The tax is \$4,675.00" plus 25% of the amount over \$33,950. Wait, so the second bracket's tax calculation gives \$4,675 when income is \$33,950, which is the start of the third bracket. So the third bracket is for income over \$33,950, so tax is \$4,675 + 25% of (income - \$33,950).

So Porter's income is \$34,050, which is \$34,050 - \$33,950 = \$100 over \$33,950.

So tax = \$4,675 + 0.25*(\$34,050 - \$33,950) = 4,675 + 0.25*100 = 4,675 + 25 = 4,700.

Ah, that makes sense. So the tax is \$4,700, which is option B.

Answer:

\$4700.00