A family has $98,150 of taxable income. The top tax rate on the graph is for taxable income over $91,150. What is the tax rate for the $7,000 they earned for $91,150?

(5 points)
The tax rate for the $7,000 of taxable income earned over $91,150 is

1 answer

To determine the tax rate for the $7,000 earned over the $91,150 threshold, we first need to know what the tax rate is for that income bracket.

Since you mentioned the top tax rate applies to taxable income over $91,150 but did not provide the specific tax rate itself, we typically need to refer to current tax brackets to assess it.

Assuming we are looking at a hypothetical scenario, let's say the tax rate for income over $91,150 is 24%, which is common in certain tax systems (this is just an example, and you should verify the actual rate).

In this case, you would apply this tax rate to the $7,000 earned over the $91,150 threshold:

\[ \text{Tax on the additional } $7,000 = 7,000 \times 0.24 = 1,680 \]

Therefore, the tax rate for the $7,000 earned over $91,150 is 24%. If you have the specific tax rate, simply replace the above with that rate.

Thus, the tax rate for the $7,000 of taxable income earned over $91,150 is 24% (or whatever the actual rate is if it differs).