Use the following information to calculate the federal average tax due (ignore tax credits) for a taxpayer who earned $122,000 from employment, and where bonds were sold for $15846
during the year that originally cost $10,000
Taxable Income
Tax Rate
Up to $50,197
On the next $50,195
On the next $55,233
On the next $66,083
Over $221,708
15%
20.5%
26%
29%
33%
Round your answer to the nearest dollar and do not enter any symbols such as »,
% or commas.

To calculate the federal average tax due for the taxpayer, we need to follow these steps:

### Step 1: Calculate the total taxable income.

The taxpayer's employment income is $122,000, and the capital gain from selling the bonds is:
\[
\text{Capital gain} = 15,846 - 10,000 = 5,846
\]

Thus, the total taxable income is:
\[
\text{Total taxable income} = 122,000 + 5,846 = 127,846
\]

### Step 2: Apply the tax rates based on the taxable income.

We will use the tax brackets to calculate the total tax liability.

#### Income up to $50,197 is taxed at 15%:
\[
50,197 \times 0.15 = 7,529.55
\]

#### Income between $50,197 and $100,392 is taxed at 20.5% (this covers the next $50,195):
\[
50,195 \times 0.205 = 10,300
\]

#### Income between $100,392 and $155,625 is taxed at 26% (this covers the next $27,454, as the income is $127,846):
\[
27,454 \times 0.26 = 7,137.64
\]

### Step 3: Sum up the tax amounts.

Now, sum the tax amounts from each bracket:
\[
7,529.55 + 10,300 + 7,137.64 = 24,967.19
\]

### Step 4: Round to the nearest dollar.

Rounding $24,967.19 to the nearest dollar gives:
\[
\boxed{24,967}
\]

Thus, the federal average tax due is **$24,967**.

---

Do you want further details or have any questions? 

Here are some related questions to expand on this topic:
1. How does capital gains tax work in different scenarios?
2. What are the tax implications of selling different types of assets?
3. How do different tax brackets apply to varying incomes?
4. How would tax credits affect the final tax due calculation?
5. What strategies can be employed to minimize taxable income?

**Tip:** It's important to differentiate between short-term and long-term capital gains, as they may be taxed at different rates depending on how long the asset was held.

Use the following information to calculate the federal average tax due (ignore tax credits) for a taxpayer who earned $122,000 from employment, and where bonds were sold for $15,846 during the year that originally cost $10,000. Taxable Income Tax Rate Up to $50,197 On the next $50,195 On the next $55,233 On the next $66,083 Over $221,708 15% 20.5% 26% 29% 33%.

Learn how to calculate the federal average tax due for a taxpayer with $122,000 income and $5,846 in capital gains. This detailed guide covers key concepts such as income tax brackets, capital gains, and tax rates for each bracket. Suitable for advanced students and individuals preparing for tax-related exams.

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