If Mary's taxable income is $68,562, how much income tax does she owe, rounded to the nearest dollar?

• A. $12,300
• B. $13,564
• C. $14,250
• D. $15,000

Answer: (B)

To determine the accurate amount of income tax owed by Mary on a taxable income of $68,562, it's essential to apply the relevant tax brackets and rates for the current tax year. In the United States, the federal income tax system is progressive, meaning that different portions of income are taxed at varying rates.

For a taxable income of $68,562, you would generally assess which tax bracket her income falls into and calculate the tax owed accordingly. Typically, the first portion of income is taxed at the lowest rates, with higher rates applied to higher income brackets.

Calculating the tax in a progressive manner involves:

1. Applying the appropriate tax rate to each segment of income that corresponds to each bracket.

2. Summing those amounts together to find the overall tax liability.

Using tax tables or tax rate schedules for the applicable year would show that for a taxable income around $68,562, the tax owed would typically fall closer to the figure of $13,564, based on the applicable rates and brackets for that income range.

It's crucial to round the final figure to the nearest dollar, which aligns with typical income tax calculations. Thus, the selection of $13,564 accurately reflects the tax owed based on Mary's taxable income.