Geronimo files his tax return as a head of household for year 2018.If his taxable income is $72,000,what is his average tax rate (rounded)? (Use tax rate schedule)
A)14.43%
B)16.36%
C)19.08%
D)22.00%
E)None of the choices are correct

Question

Quizplus · Accepted Answer

For 2018, the tax rate schedule for head of household is: 10% on income up to $13,600, 12% on income over $13,600 up to $51,800, 22% on income over $51,800 up to $82,500. Calculating the tax: $1,360 (10% of $13,600) + $4,584 (12% of $38,200) + $4,448 (22% of $20,200) = $10,392. The average tax rate is $10,392 / $72,000 = 14.43%.

Geronimo Files His Tax Return as a Head of Household