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?

Question

(1 point)
Responses

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.
The client will be taxed at a rate of 25% 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.

Answer 1

The correct interpretation for the tax client who earns $54,000 is as follows:

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%.

Explanation:

1. The first $9,275 is taxed at 10%.
2. Income from $9,276 to $37,650 (which is $28,375) is taxed at 15%.
3. The income above that (from $37,651 to $54,000, which is $16,350) is taxed at 25%.

Thus, the tax rates apply progressively based on the respective income brackets.