Question

Amy and Ethan are married and file a joint return for 2020. Their taxable income is $192,100. The amount of their tax liability, rounded to the nearest dollar, is $

Answer 1

United States has a progressive tax system, which means as you move up the pay scale, you also move up the tax.

It uses seven tax brackets for most ordinary incomes : 10 percent ,12 percent ,22 percent, 24 percent , 32 percent , 35 percent , 37 percent.

For married couples filing jointly tax return , and the taxable income falls between ($1,68,401 to $ 3,21,450) then applied tax rate is 24 %.

We can easily see that Amy and Ethan's taxable income falls between the above range which is $1,92,100. So applied tax tax rate would be 24% on their taxable income .

So 24% of 1,92,100 =

$ 46,104.

So Amy and Ethan's tax liability is $ 46,104