Income Taxes Review

What does IRS stand for?

• International Restaurant Service

• Internal Revenue Service

• Independent Reservoir Signage

• Important Really Stuff

Alejandro is single and has a taxable income of $123,400. What is his marginal tax rate?

• 22%

• 24%

• 32%

• 35%

Last year Skylar had $3545 withheld from her pay for federal income tax. When filling out her tax return she finds that she should have paid $3722. Does she get a refund, or owe money? How much?

• Refund.

  $3722

• Refund.

  $177

• Owes Money.

  $3722

• Owes Money.

  $177

Last year Lucas and his spouse paid $17,650 in taxes. They had a joint taxable income of $148,200. What is their effective tax rate?

• 11.9%

• 8.4%

• 22%

• 17.7%

Use your tax brackets:

Jimena is single and has an income of more than $89076, but less than $170,050. Which equation could be used to represent what she should expect to pay in income tax if her income is x dollars?

• 15213.50+0.24(x-89075)=y

• 0.24x = y

• 0.24(170050 - 89076) = y

• 15213.50+24(x-89075)=y