Answer:
$2367
Step-by-step explanation:
You want to know how to figure the 12% tax due on the amount that falls in the bracket $9876 to 29600.
Tax tables are often written in a somewhat misleading way. This one seems to tell you
0 to 9875 . . . . 10% tax rate
9876 to 29600 (and up to 40,125) . . . . 12% tax rate
What this means is that every dollar between (and including) the 9876th dollar and the 29600th dollar will have a $0.12 tax applied. It is figured by subtracting 9875 from the amount that falls in this bracket, and multiplying that difference by 12%.
(29600 - 9875) × 12%
= 19725 × 0.12
= 2367 . . . . . . . . tax due on the amount in the 9876 to 29600 bracket
If your taxable amount is $29,600, the total tax due is ...
(amount in first bracket) × 10% + (amount in second bracket) × 12%
= 9875 × 0.10 + (29600 -9875) × 0.12
= 987.50 +2367.00
= $3,354.50 . . . . . . . . . . . total due on $29,600
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Additional comment
It can be easier to write a new tax table that simplifies the computation. For taxable amounts up to $40,125, this table can be simplified to ...
Using this last entry for $29,600, we find the total tax due to be ...
$29,600 × 0.12 - 197.50
= $3,552.00 -197.50
= $3,354.50 . . . . . . . same as above.
The amount $197.50 is (12% -10%)×9875.
Along the same lines, the rest of the tax table can be simplified to ...
It turns out that the tax due is the maximum of the values computed using these equations. (You don't actually have to know what bracket applies to your income. Knowing the bracket does simplify the process by choosing the applicable formula.)
Note that this is a tax table for 2020. The rates for 2021 are different.
