Tax Liability question, and a tough one?

Question

So I am doing some investigation for school... what would a persons total income be in there TOTAL TAX LIABILITY was about $1,200,000 US... yeah, i have no idea...

Answer 1

There's no possible way to say.  Reverse engineering income from a tax liability is impossible as there are a variety of tax rates involved depending upon the type and source of the income.  And there is income that isn't taxable at all.

If the income was all long term capital gains, it could be in excess of $8 million.  If it was all earned income it could be as little as $3.6 million.  And if the individual has lots of municipal bonds, the sky is the limit -- their income could be in the tens or hundreds of millions.

Answer 2

1st $349,700 pays $101,469.25 in tax

next $3,138,659 pays $1,098,530.75 in tax (35%)

Income would be $3,488,359

I'm assuming that the 1.2 million is Federal income tax only.

Answer 3

At that level of income, assume they're being taxed (fed only) at 30%.... so about $4M annual income.