Juan is a single taxpayer. He earned $45,000 in ordinary taxable income this year and has $10,000 in capital gains on an investment he held for 6 months. Using the tables, what tax rate will Juan pay on his investment income?
Single Taxpayers: Income Brackets
Tax Rate
Income Bracket
10%
0 to 9,525
Single Taxpayers: Qualified
Dividends and Long-Term
Capital Gains
12%
9,526 to 38,700
Tax Rate
Income Bracket
22%
38,701 to 82,500
F
0%
O to 38,600
24%
82,501 to 157,500
15%
38,601 to 425,800
32%
157,501 to 200,000
20%
> 425,800
35%
200,001 to 500,000
37%
> 500,000
OA.
0%
B.
10%
OC.
12%
OD
15%