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Jan 19, 2026

Question of the Day: If a single person taking the standard deduction makes $40,000, how much will they pay in federal income taxes?

If you earn $40,000, how much will you pay in federal income taxes?

Answer: $2,620

Total taxable income: $40,000 - $16,100 (standard deduction) = $23,900

10% of the first $12,400 = $1,240
12% of the remaining $11,500 = $1,380

Total federal income taxes: $1,240 + $1,380 = $2,620

Questions:

  • What was your reaction to the answer? Why?
  • What is the standard deduction, and why might someone choose it over itemizing deductions?
  • Compare the tax situation of someone making $40,000 to someone making $80,000. How does the tax system address different income levels?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

 

Behind the numbers (Nerdwallet):

"Contrary to popular belief, your income isn’t taxed at just one rate. The U.S. has a progressive tax system, meaning different portions of your income get taxed at different rates."

"The federal government calculates your tax bill by first dividing your income into different taxable chunks called brackets. The income in each chunk is taxed at a different rate, ranging from 10% to 37%.

The beauty of tax brackets is that no matter which bracket(s) you’re in, you generally won’t pay a single tax rate on your entire income. The first portion of your income is always taxed at the lowest rate, and as your income increases, more of your money starts to spill over into higher-tiered tax brackets to be taxed at higher rates."

"For example, if you have $60,000 of taxable income ... as a single filer, you’ll pay a 10% tax on that first $12,400 and a 12% tax on the chunk of income between $12,401 and $50,400. Then, you’ll pay a 22% tax on the rest."

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Explore how the government spends tax money in MOVE: Your Tax Dollar In Action.

 

 

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About the Author

Dave Martin

Dave joins NGPF with 15 years of teaching experience in math and computer science. After joining the New York City Teaching Fellows program and earning a Master's degree in Education from Pace University, his teaching career has taken him to New York, New Jersey and a summer in the north of Ghana. Dave firmly believes that financial literacy is vital to creating well-rounded students that are prepared for a complex and highly competitive world. During what free time two young daughters will allow, Dave enjoys video games, Dungeons & Dragons, cooking, gardening, and taking naps.

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