Question

Calculate the

2017

total tax for Gordon​ Geist, a single taxpayer without dependents and no itemized deductions. He has active income of

​$40 comma 000

​,

a​ short-term capital gain income of

​$4 comma 000

from the sale of​ stock, and

​$7 comma 800

from book royalties. What is​ Gordon's average tax​ rate?

Answer 1

Gordon Giest is a single tax payer with no dependents.
Following is the total taxable income computation

Adjusted Gross Income	40000
Add income from short term capital gain from sale of stock	4000
Add short term capital gain from book royalties	7800
Taxable Income	$51800

Tax calculation on the taxable income for 2017

Tax rate	Total Tax	Taxable income in each bracket	Tax in each bracket
10%	$0 - $9325	9325	932.5
15%	$9325 - $37950	28625	4293.75
25%	$37950 - $91900	13850	3462.5
	Total Tax		$8688.75
	Average Tax rate = Total tax/Tota taxablel income	16.77%

Total taxable income = $51800
Total tax = $8688.75
Average tax rate = 16.77%