Question

The 2020 Arizona graduate a tax rate is given in the table below for those filing status is single or filing separate. To use this table you will calculate the amount of money to be taxed at each level and then sum up the amount for each given tax rate. Find the income reported as $67,200. Round your answer to the nearest whole dollar amount.

Answer 1

The total income is $67,200.

Then, the income between $0 and $27,272 is: $27,272 and the tax rate is 2.59%, then the amount is:

$27,272\times\frac{2.59\text{ \%}}{100\text{ \%}}=706.345$

Now, the income between $27,272 and $54,544 is: 54544-27272= $27,272. And the tax rate is 3.34%, then the tax paid for this income is:

$27,272\times\frac{3.34\text{ \%}}{100\text{ \%}}=910.885$

For the income between $54,544 and $163,632 the tax rate is 4.17%, in this part we only have: $67,200-$54,544=$12,656, then the tax paid for this income is:

$12656\times\frac{4.17\text{ \%}}{100\text{ \%}}=527.755$

Then, the total amount of tax paid is:

$706.345+$910.885+$527.755=$2144.99=$2145