Understanding Tax Calculations and Rates

The video tutorial explains how to calculate the amount of tax owed using a marginal tax rates table. It uses Sarah's example, who is the head of household with a taxable income of $120,000 and a $9,000 tax credit. The tutorial walks through calculating taxes for different income brackets: 10% for the first $13,850, 12% for the next bracket up to $52,850, and 22% for the bracket up to $84,200. Finally, it explains how to apply the tax credit to determine the final tax owed.

What is the source of the marginal tax rates table used in the video?

• TaxFoundation.org

• NerdWallet.com

• TurboTax.com

• IRS.gov

What is Sarah's filing status in the tax example?

• Single

• Married Filing Jointly

• Qualifying Widow(er)

• Head of Household

What is Sarah's taxable income in the example?

• $150,000

• $180,000

• $120,000

• $100,000

How much is Sarah's tax credit?

• $9,000

• $5,000

• $7,000

• $11,000

What percentage of tax does Sarah pay on her first $13,850 of income?

• 10%

• 20%

• 15%

• 5%

How much tax does Sarah owe on her first $13,850 of income?

• $1,500

• $1,850

• $1,385

• $2,000

What is the tax rate for the income bracket between $13,851 and $52,850?

• 15%

• 18%

• 10%

• 12%

How much tax does Sarah owe on the income between $13,851 and $52,850?

• $3,500

• $4,680

• $5,200

• $6,000

What is the tax rate for the income bracket between $52,851 and $84,200?

• 22%

• 24%

• 20%

• 18%

How much tax does Sarah owe on the income between $52,851 and $84,200?

• $5,897

• $6,897

• $8,897

• $7,897