Understanding Tax Brackets and Calculations

The video tutorial explains how to calculate Mario's total tax due for 2019. Starting with his gross income of $80,000, the standard deduction of $12,200 is subtracted to find his taxable income of $67,800. The tutorial then identifies the relevant tax brackets and calculates the tax for each bracket: 10% for the first $9,700, 12% for the next $29,775, and 22% for the remaining $28,325. The final tax amount is calculated to be $10,774.50.

What was Mario's gross income in 2019?

• $90,000

• $100,000

• $80,000

• $70,000

What is the standard deduction for 2019?

• $15,000

• $18,000

• $12,200

• $10,000

How do you calculate Mario's taxable income?

• Add the standard deduction to the gross income

• Subtract the standard deduction from the gross income

• Multiply the gross income by the standard deduction

• Divide the gross income by the standard deduction

Which tax bracket does Mario's taxable income fall into?

• 22%

• 24%

• 12%

• 10%

What are the tax rates for the brackets Mario's income falls into?

• 10%, 12%, 22%

• 10%, 15%, 25%

• 12%, 22%, 24%

• 15%, 20%, 25%

What is the tax rate for the first bracket?

• 15%

• 10%

• 5%

• 20%

What is the range for the first tax bracket?

• $0 to $9,700

• $0 to $10,000

• $0 to $12,000

• $0 to $15,000

How is the tax for the first bracket calculated?

• 0.12 times $9,700

• 0.22 times $9,700

• 0.10 times $9,700

• 0.24 times $9,700

What is the tax rate for the second bracket?

• 20%

• 15%

• 12%

• 10%

What is the difference in the second bracket used for calculation?

• $29,775

• $30,000

• $29,475

• $29,975