Question

if the federal government used the progressive tax rate below for individual income tax, complete the table to calculate the federal income tax owed on a $48,200 salary ($36,000 in taxable income).

standard deduction ($)	12,200
income range ($)	progressive tax rate	taxable income ($)	income tax owed ($)
0 - 9,700	10%	9,700	970.00
9,701 - 39,475	12%	26,300	?
39,476 - 84,200	22%
84,201 - 160,275	24%
160,276+	32%
total		36,000

Explanation:

Step1: Determine taxable income in the 12% range

The taxable income is $36,000$. The first $9,700$ is taxed at 10%. So the amount of income in the 12% - tax - rate range is $36000 - 9700=26300$.

Step2: Calculate tax in the 12% range

The tax rate for this range is 12%. So the tax owed in this range is $0.12\times26300 = 3156$.

Step3: Calculate total tax

The tax from the 10% range is $970$ and the tax from the 12% range is $3156$. So the total tax owed is $970+3156 = 4126$.

Answer:

The value in the '?' cell is $3156$ and the value in the 'Total' cell for income tax owed is $4126$.