Follow the steps to calculate the federal income tax owed on a $30,000 sallary, using the given tax rates.

Question

Standard deduction $12,200
0 to 9,700 is 10%
9,701 to 39,475 is 12%

Answer 1

To calculate the federal income tax owed on a salary of $30,000 using the given tax rates, follow these steps:

Step 1: Determine Taxable Income

1. Start with your salary: $30,000.
2. Subtract the standard deduction of $12,200 from your salary:
   • $30,000 - $12,200 = $17,800 (this is your taxable income).

Step 2: Apply the Tax Rates

1. The taxable income of $17,800 falls into two income brackets.

   • The first $9,700 is taxed at 10%.
   • The amount from $9,701 to $17,800 is taxed at 12%.

2. Calculate the tax for the first bracket:

   • $9,700 * 10% = $970.

3. Calculate the amount in the second bracket:

   • $17,800 (taxable income) - $9,700 (upper limit of the first bracket) = $8,100.
   • Tax this amount at 12%:
   • $8,100 * 12% = $972.

Step 3: Calculate Total Federal Income Tax Owed

1. Sum the tax from both brackets:
   • Tax from the first bracket: $970.
   • Tax from the second bracket: $972.
   • Total tax owed: $970 + $972 = $1,942.

Conclusion

The federal income tax owed on a $30,000 salary, after taking into account the standard deduction and applying the applicable tax rates, is $1,942.