Calculate the 2020 total tax for Gordon​ Geist, a single taxpayer without dependents and no itemized deductions. He has an active income of ​$44 comma 000​, a​ short-term capital gain income of ​$3 comma 400 from the sale of​ stock, and ​$6 comma 400 from book royalties. What is​ Gordon's average tax rate on his overall​ (total) income?

To calculate Gordon Geist's total tax and average tax rate for 2020, let's go through the process step-by-step.

### Step 1: Calculate Total Gross Income
Gordon's total gross income consists of:
- Active income: $44,000
- Short-term capital gains (taxed as ordinary income): $3,400
- Book royalties (taxed as ordinary income): $6,400

So, the total gross income is:
\[
44,000 + 3,400 + 6,400 = 53,800
\]

### Step 2: Calculate the Standard Deduction
Since Gordon is single and has no itemized deductions, he qualifies for the standard deduction in 2020, which is **$12,400**.

### Step 3: Calculate Taxable Income
Now, subtract the standard deduction from the total gross income:
\[
53,800 - 12,400 = 41,400
\]
So, Gordon's taxable income is **$41,400**.

### Step 4: Calculate Federal Income Tax Liability
For 2020, the tax brackets for a single filer are as follows:

- 10% on income up to $9,875
- 12% on income from $9,876 to $40,125
- 22% on income from $40,126 to $85,525

Now, calculate Gordon's tax step-by-step:

1. **First $9,875 at 10%:**
   \[
   9,875 \times 0.10 = 987.50
   \]

2. **Next portion from $9,876 to $40,125 (i.e., $40,125 - $9,875 = $30,250) at 12%:**
   \[
   30,250 \times 0.12 = 3,630
   \]

3. **Remaining portion of taxable income ($41,400 - $40,125 = $1,275) at 22%:**
   \[
   1,275 \times 0.22 = 280.50
   \]

Now, add up the tax from all portions:
\[
987.50 + 3,630 + 280.50 = 4,898
\]

So, Gordon's total federal income tax liability is **$4,898**.

### Step 5

Calculate the 2020 total tax for Gordon Geist, a single taxpayer without dependents and no itemized deductions. He has an active income of $44,000, a short-term capital gain income of $3,400 from the sale of stock, and $6,400 from book royalties. What is Gordon's average tax rate on his overall (total) income?

This guide walks you through the step-by-step process to calculate the 2020 total tax and average tax rate for Gordon Geist, a single taxpayer with $44,000 in active income, $3,400 in short-term capital gains, and $6,400 in book royalties. Learn how to apply the federal income tax brackets and standard deduction.

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