Phung works as a pharmacist in Tampa, Florida. Her income is $116,200 a year.Which statements about Phung’s income and tax situation are correct? Check all that apply.

Florida has no state income tax, so A is incorrect. Under the federal tax brackets used here, the first $9,075 is taxed at 10%, and Phung’s income reaches the 28% bracket, so portions of her income are taxed at 10%, 15%, 25%, and 28%; this does not mean all her income is taxed at 28%. The largest bracket increase occurs after about $36,000, when the rate rises from 15% to 25%, a 10-percentage-point increase.

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