Answer:
$7271
Step-by-step explanation:
This tax rate table makes computing the tax unnecessarily complicated. For a taxable income amount of $46,000, the tax is computed as ...
0.25 × the amount over $37,650 + tax on $37650
And the tax on $37650 is computed as ...
0.15 × the amount of $37650 that is over $9275 + tax on $9275
And the tax on $9275 is computed as ...
0.10 × $9275 = $927.50
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Then the tax on $37650 is ...
0.15 × ($37650 -9275) + 927.50 = $5183.75
And that makes the tax on $46000 be ...
0.25 × ($46000 -37650) + 5183.75 = $7271.25
This may be the number your computer is looking for.
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All amounts on a US federal tax form should be rounded to the nearest dollar. Thus the actual tax owed on $46,000 is $7271.00.
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Further comments on the problem
The "taxable income" is the amount that appears on the tax form after deductions and exemptions are subtracted from total income. Hence those numbers in the table have no bearing on this problem.
Some tax tables give a formula specifically geared to the particular income range. Here, that formula might be
- 0.25×(taxable income) - $4228.75 . . . . . for income $37650–91150
It could also be written as ...
- 0.25×((taxable income) - $16915) . . . . for income $37650–91150
