Jayde had $33,000 of taxable income in 2018. Based on the table, how much federal income tax will Jayde owe in 2018? Marginal Tax Rates, 2018
10% on the first $9,525 of income
12% on taxable income over $9,525 to $38,700
22% on taxable income over $38,700 to $82,500
24% on taxable income over $82,500 to $157,500
32% on taxable income over $157,500 to $200,000
35% on taxable income over $200,000 to $500,000
37% on taxable income over $500,000
O $3,960.00
O $3,769.50
O $3,490.50
O $3,300.00

$3,769.50

Explanation:

The computation of federal income tax is shown below:-

Since the taxable income is $33,000

So on the first $9,525 the 10% tax rate is charged i.e $952.50

Now the remaining amount left i.e

= ($33,000 - $9,525) × 12%

= $2,817

So, the total federal income tax for the year 2018 is

= $952.50 + $2,817

= $3,769.50

Hence, the second option is correct

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