type the correct answer in the box. use numerals instead of words. alex is a single taxpayer with $80,000 in…

type the correct answer in the box. use numerals instead of words. alex is a single taxpayer with $80,000 in taxable income. his investment income consists of $500 of qualified dividends and short - term capital gains of $2,000. use the tables to complete the statement. single taxpayers: income brackets tax rate income bracket 10% 0 to 9,525 12% 9,526 to 38,700 22% 38,701 to 82,500 24% 82,501 to 157,500 32% 157,501 to 200,000 35% 200,001 to 500,000 37% > 500,000 single taxpayers: qualified dividends and long - term capital gains tax rate income bracket 0% 0 to 38,600 15% 38,601 to 425,800 20% > 425,800 alex will owe $ in taxes on his investment income.

type the correct answer in the box. use numerals instead of words. alex is a single taxpayer with $80,000 in taxable income. his investment income consists of $500 of qualified dividends and short - term capital gains of $2,000. use the tables to complete the statement. single taxpayers: income brackets tax rate income bracket 10% 0 to 9,525 12% 9,526 to 38,700 22% 38,701 to 82,500 24% 82,501 to 157,500 32% 157,501 to 200,000 35% 200,001 to 500,000 37% > 500,000 single taxpayers: qualified dividends and long - term capital gains tax rate income bracket 0% 0 to 38,600 15% 38,601 to 425,800 20% > 425,800 alex will owe $ in taxes on his investment income.

Answer

Explanation:

Step1: Identify tax - rate for qualified dividends

The $500 of qualified dividends fall within the 0 - 38,600 income bracket for qualified dividends and long - term capital gains, so the tax rate for qualified dividends is 0%.

Step2: Identify tax - rate for short - term capital gains

Short - term capital gains are taxed at ordinary income tax rates. Alex's taxable income is $80,000, and the short - term capital gains of $2,000 are taxed at 22% since his income is in the 38,701 - 82,500 bracket.

Step3: Calculate tax on short - term capital gains

The tax on short - term capital gains is $2000\times0.22 = 440$.

Step4: Calculate total tax on investment income

The tax on qualified dividends is $500\times0 = 0$. The total tax on investment income is the sum of the tax on qualified dividends and short - term capital gains, which is $0 + 440=440$.

Answer:

440