Solve the Problem

Multiple Choice

Solve the problem. Refer to the table if necessary.
-Kelsey earned $65,208 in wages. Conner earned $65,208, all in dividends and long-term capital gains. Calculate the overall tax rate for each, including both FICA and income taxes. Assume they
Are both single and take the standard deduction. Note that long-term capital gains and dividends
Are taxed at 0% for income in the 10% and 15% tax brackets and at 15% for income in all higher tax
Brackets.

A) Kelsey: 0.0%
B) Kelsey: 22.6%
C) Kelsey: 21.4%
D) Kelsey: 14.9% Conner: 7.3% Conner: 4.4% Conner: 12.0% Conner: 4.4%