Taxes:

Question

In 2010 Jackie and Bob had a joint income of $156,000. They took a total deduction of $15,000 and had a tax credit of $2500. If they filed jointly, how much tax did they owe?

If tax is over: 137,300

But not over: 209,250

This amount: 26,687.50

Plus this %: 28%

Of the excess over: 137,300

26687.50+0.28*(150,000-137300) = 30243.5

I however am not sure how to now incorporate the credit of $2500 and the tax deduction of $15,000.

Answer 1

This line isn't right.

If tax is over: 137,300

They can't have a tax over 137,300 on an income of 156,000.