MATH: Income Tax Brackets [PRACTICE IT]

Summary

In the provided transcript, Mario's 2019 income and tax calculation are detailed. With a gross income of $80,000, after subtracting the standard deduction of $12,200, his taxable income is $67,800. This places him in the 22% tax bracket, with applicable rates for lower brackets also considered. The script demonstrates how to calculate taxes for each bracket, resulting in a total tax due of $10,774.50, offering a clear explanation of the tax calculation process.

Takeaways

• 💼 Mario's gross income in 2019 was $80,000.
• 📉 The standard deduction for 2019 was $12,200.
• 🔢 After subtracting the standard deduction, Mario's taxable income was $67,800.
• 📊 Mario's taxable income fell into the 22% tax bracket for 2019.
• 📈 The tax calculation included previous brackets of 10% and 12%.
• 📝 The first tax bracket ranged from $0 to $9,700, taxed at 10%.
• 📋 The second tax bracket was from $9,700 to $39,475, taxed at 12%.
• 📉 The remaining income up to $67,800 was taxed at the 22% rate.
• 🧮 The tax for the first bracket was calculated as 10% of $9,700.
• 📊 The tax for the second bracket was 12% of the difference between $39,475 and $9,700.
• 💰 The final tax amount for Mario was $10,774.50 after adding the taxes from each bracket.

Q & A

What was Mario's gross income in 2019?

Mario's gross income in 2019 was $80,000.

What is the standard deduction for 2019 that Mario can use?

The standard deduction for 2019 that Mario can use is $12,200.

What is Mario's taxable income after subtracting the standard deduction?

After subtracting the standard deduction of $12,200, Mario's taxable income is $67,800.

In which tax bracket does Mario's taxable income fall in 2019?

Mario's taxable income falls in the 22% tax bracket for 2019.

Which tax brackets are relevant for calculating Mario's tax in 2019?

The tax brackets relevant for calculating Mario's tax in 2019 are 10%, 12%, and 22%.

How is the tax calculated for each bracket in Mario's case?

The tax is calculated by applying the respective tax rates to the income ranges within each bracket: 10% for the first $9,700, 12% for the next $29,775, and 22% for the remaining income up to $67,800.

What is the tax amount for the first bracket in Mario's tax calculation?

The tax amount for the first bracket (10%) is $970 (10% of $9,700).

What is the tax amount for the second bracket in Mario's tax calculation?

The tax amount for the second bracket (12%) is $3,573 (12% of $29,775).

What is the tax amount for the third bracket in Mario's tax calculation?

The tax amount for the third bracket (22%) is $6,231 (22% of $28,325).

What is Mario's total tax due based on the script?

Mario's total tax due is $10,774.50.

How is the total tax due calculated by adding the tax amounts from each bracket?

The total tax due is calculated by adding the tax amounts from each bracket: $970 (first bracket) + $3,573 (second bracket) + $6,231 (third bracket) = $10,774.50.