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 $37,300 salary ($25,100 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%	15,400	?
39,476 - 84,200	22%
84,201 - 160,275	24%
160,276+	32%
total		25,100

Explanation:

Step1: Identify taxable income in the 12% range

The taxable income is $25,100$. The first $9,700$ is taxed at 10%. The amount in the 12% - tax - rate range is $25100 - 9700=15400$.

Step2: Calculate tax in the 12% range

The tax on the amount in the 12% range is calculated by multiplying the amount in this range by the tax rate. So, the tax is $0.12\times15400 = 1848$.

Step3: Calculate total tax

The tax on the first $9,700$ is $970$. The tax on the remaining $15,400$ is $1848$. The total tax is $970+1848 = 2818$.

Answer:

$1848$ (for the value in the green - highlighted cell), $2818$ (for the total income tax owed)