Mary is filing Head of Household with a taxable income of $79,280. What is her income tax for Marks: 1 2018? a. $11,989 b. $13,380 c. $9,320d. $11,978

Option (a) $11,989

Explanation:

Data provided in the question:

Taxable income = $79,280

Now,

we should know,

Tax rate Taxable income Tax owed

10% $0 to $13,600 10% of taxable income

12% $13,601 to $51,800 $1,360 plus 12% of the amount over $13,600

22% $51,801 to $82,500 $5,944 plus 22% of the amount over 51,800

Since,

Income of $79,280 lies in the taxable income bracket of $51,801 to $82,500

Therefore,

Income tax for Marks = $5,944 + 22% of ($79,280 - $51,800)

= $5,944 + (0.22 * 27480)

= $5,944 + $6,045.6

= $11,989.6 ≈ $11,989

Hence,

Option (a) $11,989