Question

Geronimo files his tax return as a head of household for year 2019. If his taxable income is $72,000, what is his average tax rate (rounded)? (Use tax rate schedule.)

Answer 1

The 2019 tax rate schedule for Head of Household status in the US is as follows:

Head of household tax rate schedule 2019
Tax rate	Income
10%	$0 to $13,850
12%	$13,851 to $52,850
22%	$52,851 to $84,200
24%	$84,201 to $160,700
32%	$160,701 to $204,100
35%	$204,101 to $510,300
37%	$510,301 and more

For an income of $72,000, the taxpayer will fall in 22% bracket and taxes will be calculated as follows:

(10% * $13,850) + 12%*($52,850 - $13,850) + 22%*($72,000 - $52,850)

= $1,385 + $4,680 + $4,213

= $10,278

So, the total tax owed is $10,278 on a taxable income of $72,000

So, the average tax rate = ($10,278 / $72,000)*100

= 14.28%, which can be rounded off to 14%.