Question

fill in the blank question in 2025, ryan files as head of household and has taxable income of $122,500. none of his taxable income consists of capital gains or qualified dividends. using the tax rate schedule, his tax liability rounded to the nearest dollar, totals $ . (enter your answer as a whole number without decimals)

Explanation:

To determine Ryan's tax liability as head of household for 2025, we use the tax rate schedule for head of household. The 2025 tax brackets for head of household are:

• 10% on income up to $17,960
• 12% on income between $17,961 and $81,200
• 22% on income between $81,201 and $171,050
• 24% on income between $171,051 and $343,700
• 32% on income between $343,701 and $473,750
• 35% on income between $473,751 and $713,750
• 37% on income over $713,750

Ryan's taxable income is $122,500. We calculate the tax for each bracket:

Step 1: Tax on first $17,960

The tax rate for this bracket is 10%.
Tax = \( 17960 \times 0.10 = 1796 \)

Step 2: Tax on income between $17,961 and $81,200

The amount in this bracket is \( 81200 - 17960 = 63240 \)
The tax rate is 12%.
Tax = \( 63240 \times 0.12 = 7588.8 \)

Step 3: Tax on income between $81,201 and $122,500

The amount in this bracket is \( 122500 - 81200 = 41300 \)
The tax rate is 22%.
Tax = \( 41300 \times 0.22 = 9086 \)

Step 4: Total tax liability

We sum the taxes from each bracket:
Total Tax = \( 1796 + 7588.8 + 9086 \)
First, \( 1796 + 7588.8 = 9384.8 \)
Then, \( 9384.8 + 9086 = 18470.8 \)
Rounded to the nearest dollar, this is \( 18471 \)

Answer:

18471