Question
Quadrant 1 of a coordinate plane shows the x axis labeled taxable income and the y axis labeled tax rate.
A tax preparer needs to explain tax rates to a client. Which of the following best interprets the piecewise linear function for a tax client who earns $54,000?
(1 point)
Responses
The client will be taxed at a rate of 24% since their taxable income is within the third step of the function.
The client will be taxed at a rate of 24% since their taxable income is within the third step of the function.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $37,650. They will be taxed at a rate of 25% for $54,000.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $37,650. They will be taxed at a rate of 25% for $54,000.
The client will be taxed at a rate of 25% since their taxable income is within the third step of the function.
A tax preparer needs to explain tax rates to a client. Which of the following best interprets the piecewise linear function for a tax client who earns $54,000?
(1 point)
Responses
The client will be taxed at a rate of 24% since their taxable income is within the third step of the function.
The client will be taxed at a rate of 24% since their taxable income is within the third step of the function.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $16,350 will be taxed at a rate of 25%.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $37,650. They will be taxed at a rate of 25% for $54,000.
The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $37,650. They will be taxed at a rate of 25% for $54,000.
The client will be taxed at a rate of 25% since their taxable income is within the third step of the function.
Answers
GPT-4o mini
To interpret the piecewise linear function for a client who earns $54,000, we need to understand how the progressive tax system works. Typically, in a progressive tax system, different portions of income are taxed at different rates.
Given the options provided, let’s analyze the income brackets usually associated with a progressive tax system:
1. **10%** for the first portion of taxable income (e.g., up to $9,275).
2. **15%** for the next portion (e.g., from $9,276 to $38,650).
3. **25%** for taxable income over that amount.
For an income of $54,000, the application would be as follows:
- The first $9,275 would be taxed at **10%**.
- The amount from $9,276 to $38,650 (which is $28,375) would be taxed at **15%**.
- The remaining amount over $38,650 up to $54,000 (which is $15,350) would be taxed at **25%**.
Thus, the best response interpreting the piecewise tax function would be:
**The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $15,350 will be taxed at a rate of 25%.**
However, the correct option provided specifically mentions $16,350 for the 25% bracket, which is slightly incorrect based on the breakdown, but the general approach of the provided options does help a client understand how their income is taxed progressively.
Therefore, choose the response that expresses the understanding of how the tax brackets work with the provided figures.
Given the options provided, let’s analyze the income brackets usually associated with a progressive tax system:
1. **10%** for the first portion of taxable income (e.g., up to $9,275).
2. **15%** for the next portion (e.g., from $9,276 to $38,650).
3. **25%** for taxable income over that amount.
For an income of $54,000, the application would be as follows:
- The first $9,275 would be taxed at **10%**.
- The amount from $9,276 to $38,650 (which is $28,375) would be taxed at **15%**.
- The remaining amount over $38,650 up to $54,000 (which is $15,350) would be taxed at **25%**.
Thus, the best response interpreting the piecewise tax function would be:
**The client will be taxed at a rate of 10% for the first $9,275 of taxable income. They will be taxed at a rate of 15% for $28,375, which is the amount of taxable income within the second step. The remaining $15,350 will be taxed at a rate of 25%.**
However, the correct option provided specifically mentions $16,350 for the 25% bracket, which is slightly incorrect based on the breakdown, but the general approach of the provided options does help a client understand how their income is taxed progressively.
Therefore, choose the response that expresses the understanding of how the tax brackets work with the provided figures.