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Joel and Sara are filing Married fling jointly. Their taxable income is $340,000. What is their 2018 income tax? a. $70,179 b. $70,379 c. $60,179 d. $72,179

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  1. 30 August, 11:28
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    Answer: d. $72,179

    Explanation:

    For couples filing jointly in 2018, their tax rates are as follows:

    10% for $0 to $19,050

    12% for $19,051 to $77,400

    22% for $77,401 to $165,000

    24% for $165,001 to $315,000

    32% for $315,001 to $400,000

    But income tax is progressive, so the tax rate only applies to the amount in that bracket above the basic tax. So their first income of $19050 is taxed at 10% and the next 58350 is taxed at 12% and so on.

    For a taxable income of 340000, the applicable tax is as follows:

    19050 at 10% = 1905

    58350 at 12% = 7002

    87600 at 22% = 19272

    150000 at 24% = 36000

    25000 at 32% = 8000

    1905 + 7002 + 19272 + 36000 + 8000 = $72,179
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