Question

a married couple filing their federal income tax return jointly had a taxable income of $76,300. according to the table below, how much of that income will they have left over after paying their federal income tax?
married filing jointly

taxable income is over	but not over	the tax is	plus	of the amount over
16,700	67,900	1,670.00	15%	16,700
67,900	137,050	9,350.00	25%	67,900
137,050	208,850	26,637.50	28%	137,050
208,850	372,950	46,741.50	33%	208,850
372,950		100,894.50	35%	372,950

a. $11,450.00
b. $64,850.00
c. $66,950.00

Explanation:

Step1: Determine the tax bracket

The taxable income is $76,300. Looking at the table, the bracket for "Taxable income is over $67,900 but not over $137,050" doesn't apply. The correct bracket is "over $16,700 but not over $67,900"? Wait, no, $76,300 is over $67,900. Wait, let's re - check:

Wait, the first bracket: 0 - 16,700. Second: 16,700 - 67,900. Third: 67,900 - 137,050.

$76,300 is in the third bracket? Wait, no, 67,900 < 76,300 < 137,050. Wait, no, the second bracket is 16,700 - 67,900, third is 67,900 - 137,050.

Wait, the tax calculation for the third bracket: "The tax is $9,350.00 plus 25% of the amount over $67,900".

Wait, no, wait the table:

For the row where "Taxable income is over $67,900 but not over $137,050", the tax is $9,350.00 plus 25% of the amount over $67,900.

But wait, $76,300 - 67,900 = $8,400.

Tax = 9,350+0.25*8,400 = 9,350 + 2,100 = $11,450.

Then the income left over is 76,300 - 11,450 = $64,850.

Wait, but let's check the second bracket again. Wait, maybe I made a mistake. Let's re - examine the table:

First row: 0 - 16,700: tax = 0 + 10% of amount over 0.

Second row: 16,700 - 67,900: tax = 1,670 + 15% of amount over 16,700.

Third row: 67,900 - 137,050: tax = 9,350 + 25% of amount over 67,900.

Wait, $76,300 is in the third row (over 67,900). So amount over 67,900 is 76,300 - 67,900 = 8,400.

Tax = 9,350+0.25*8,400 = 9,350 + 2,100 = 11,450.

Then income left = 76,300 - 11,450 = 64,850. Which matches option B.

Answer:

B. $64,850.00