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 ​$6 comma 400 from book royalties. What is​ Gordon's average tax rate on his overall​ (total) income?
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Part 1
​Gordon's gross​ (overall) income for the 2020 tax year is ​$

enter your response here.  ​(Round to the nearest​ cent.)
Part 2
Assuming​ Gordon's filing status is​ single, his standard deduction for the 2020 tax year is ​$

enter your response here.  ​(Enter the amount to the nearest​ cent.) Click the following link for a standard deduction​ table: LOADING....
Part 3
​Gordon's taxable income for the 2020 tax year is ​$

enter your response here.  ​(Round to the nearest​ cent.)
Part 4
​Gordon's total income tax due for the 2020 tax year is ​$

enter your response here.  ​(Round to the nearest​ cent.) Click the following link for the tax rates and brackets​ table: LOADING....
Part 5
​Gordon's average tax​ rate, on his total​ income, for the 2020 tax year is

enter your response here

Let's break down each part of the problem for clarity and calculation:

### Part 1: Gordon's Gross Income
Gordon's gross income is the sum of his active income, short-term capital gains, and book royalties.

- Active income: $44,000
- Short-term capital gain: $3,400
- Book royalties: $6,400

Thus, his **gross income** is:
\[
\text{Gross Income} = 44,000 + 3,400 + 6,400 = 53,800
\]
**Gordon's gross income for 2020** is **$53,800**.

### Part 2: Standard Deduction for Single Filing Status (2020)
For the 2020 tax year, the standard deduction for a single filer is **$12,400**.

### Part 3: Gordon's Taxable Income
Taxable income is calculated as the gross income minus the standard deduction.

\[
\text{Taxable Income} = 53,800 - 12,400 = 41,400
\]
**Gordon's taxable income** for the 2020 tax year is **$41,400**.

### Part 4: Gordon's Total Income Tax Due
Using the 2020 federal income tax brackets for a single filer:

- 10% on the first $9,875
- 12% on the income from $9,875 to $40,125
- 22% on income above $40,125

Let's calculate his tax:

- 10% of $9,875 = $987.50
- 12% of ($40,125 − $9,875) = 12% of $30,250 = $3,630
- 22% of ($41,400 − $40,125) = 22% of $1,275 = $280.50

Now, summing these up:
\[
\text{Total Tax Due} = 987.50 + 3,630 + 280.50 = 4,898
\]
Thus, **Gordon's total income tax due** for the 2020 tax year is **$4,898**.

### Part 5: Gordon's Average Tax Rate
The average tax rate is calculated by dividing the total tax due by the gross income.

\[
\text{Average Tax Rate} = \frac{4,898}{53,800} \times 100 = 9.1\%
\]
Thus, **Gordon's average tax rate** for 2020 is **9.1%**.

---

### Recap:
1. **Gross income**: $53,800
2. **Standard deduction**: $12,400
3. **Taxable income**: $41,400
4. **Total tax due**: $4,898
5. **Average tax rate**: 9.1%

Would you like any more details or further clarifications?

---

Here are 5 related questions for further practice:
1. What would Gordon's tax be if he had itemized deductions instead of using the standard deduction?
2. How would Gordon's tax situation change if his short-term capital gains were long-term gains?
3. If Gordon earned an additional $5,000 in royalties, how would it affect his tax rate?
4. How would Gordon's average tax rate change if his total income increased by $10,000?
5. What are the differences between short-term and long-term capital gains taxation?

**Tip**: The average tax rate gives a good overall picture of how much of your income goes to taxes, but the **marginal tax rate** determines how much tax you'll pay on each additional dollar earned.

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?

Discover how to calculate the 2020 total tax and average tax rate for Gordon Geist, a single taxpayer with an active income of $44,000, short-term capital gains of $3,400, and royalties of $6,400. Learn the step-by-step process to determine gross income, taxable income, and total tax due. Suitable for high school students in Grades 11-12.

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