Hello,
4. Lee falls under the second category, as he has an income between $27051 and $65550.
So, he pays $4057.50 plus 27.5% of the amount over $27,050.
The amount Lee earns over $27050 is $5850. A 27.5% tax on $5850 is = (0.275)(5850) = $1608.75.
So, Lee pays $4057.50 + $1608.75 = $5666.25.
The answer is C.
5. A deductible in this situation is how much Ellen must cover on her own out of her medical expenses. If she has $2,367 in expenses, $1,000 of which she has to pay, then Ellen does not have to pay $2367-$1000 = $1367 of her medical expenses.
Ellen does not have to pay $1367 of her medical expenses.
Hope this helps!
