Question

household (2023)
tax rate on taxable income from... up to...
10% $0 $15,700
12% $15,701 $59,850
22% $59,851 $95,350
24% $95,351 $182,100
32% $182,101 $231,250
35% $231,251 $578,100
37% $578,101 and up
kristen is filing as head of household. she has an adjusted gross income (agi) of $62,000 and a total of $23,000 in deductions and credits. use the 2023 tax brackets for head of household to calculate kristen’s total tax for that year. enter your answer in the box.
kristen’s total tax for the year was $\square.

Explanation:

Step1: Calculate taxable income

Taxable Income = AGI - Deductions = $\$62,000 - \$23,000 = \$39,000$

Step2: Calculate tax on first bracket

10% on $\$15,700$: $0.10 \times 15700 = \$1,570$

Step3: Calculate remaining taxable income

Remaining Income = $\$39,000 - \$15,700 = \$23,300$

Step4: Calculate tax on second bracket

12% on $\$23,300$: $0.12 \times 23300 = \$2,796$

Step5: Sum total tax

Total Tax = $\$1,570 + \$2,796$

Answer:

$\$4,366$