Question 7 Congratulations! You won a lottery prize and have a taxable income of $1,025, 400. Use the table below to answer the following questions.
Taxable income
Taxes Owed
$0 – $9, 075
10% of taxable income
$9,076 - $36, 900 $907.50 plus 15% of excess over $9, 075
$36,901 - $89, 350 $5,081.25 plus 25% of excess over $36, 900
$89, 351 - $186,350 $18, 193.75 plus 28% of excess over $89, 350
$186,351 - $405, 100 $45, 353.75 plus 33% of excess over $186, 350
$405, 101 - $406, 750 $117,541.25 plus 35% of excess over $405, 100
$406,751 plus
$118, 118.75 plus 39.6% of excess over $406, 750
Make sure that you fill in each answer area before checking "How Did I Do?".
a. How much tax will you pay on your winnings?
Round to the nearest dollar
$ Number