Question

Meera is a hard worker and in 2023 earned a gross annual salary of $225,000. As a top performer, she also received a bonus just before the end of the year in the amount of $10,500. With Meera being in a high marginal tax bracket, how much of her bonus will she get to keep after taxes?




2023 Taxable Income Income
first $49,275 26.53%
over $49,275 up to $53,359 31.53%
over $53,359 up to $98,540 36.12%
over $98,540 up to $106,717 41.12%
over $106,717 up to $119,910 45.71%
over $119,910 up to $165,430 47.46%
over $165,430 up to $235,675 50.23%
over $235,675 53.31%


Question 27Select one:

a.
$5,535


b.
$5,226


c.
$5,274


d.
$4,902


e.
$5,598

Answer 1

The bonus amount of $10,500 falls into the tax bracket of over $98,540 up to $106,717, which has a tax rate of 41.12%.

Therefore, the amount of the bonus that Meera will get to keep after taxes is:
$10,500 - ($10,500 x 0.4112) = $10,500 - $4,324.80 = $5,175.20

So the closest answer is b. $5,226.