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

Question

Now calculate the amount of federal income tax owed in the 12% bracket.

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

Taxable income = $17,800
$9,700 10% = $970
8,100 12% =

Answer 1

To calculate the federal income tax owed on a $30,000 salary, we need to follow these steps:

1. Calculate Taxable Income: Start with the salary and subtract the standard deduction.

   \[ \text{Taxable Income} = \text{Salary} - \text{Standard Deduction} \] \[ \text{Taxable Income} = 30,000 - 12,200 = 17,800 \]

2. Calculate the Tax Breakdown:

   • The first $9,700 is taxed at 10%: \[ \text{Tax for first bracket} = 9,700 \times 0.10 = 970 \]

   • The remaining amount above $9,700 (which is $17,800 - $9,700 = $8,100) is taxed at 12%: \[ \text{Tax for second bracket} = 8,100 \times 0.12 = 972 \]

3. Total Tax Owed: Add the taxes from both brackets: \[ \text{Total Tax} = \text{Tax for first bracket} + \text{Tax for second bracket} \] \[ \text{Total Tax} = 970 + 972 = 1,942 \]

So, the total federal income tax owed on a $30,000 salary, after accounting for the standard deduction, is $1,942.

To specifically address the tax owed in the 12% bracket: \[ 8,100 \times 0.12 = 972 \] Thus, the amount of federal income tax owed in the 12% bracket is $972.