Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2021 Tax Rate Schedules Individuals Jorge and Anita, married taxpayers, earn $153,000 in taxable income and $43,000 in interest from an investment in City of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
2021 Tax Rate Schedules Individuals Jorge and Anita, married taxpayers, earn $153,000 in taxable income and $43,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $103,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $103,000 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Schedule Z-Head of Household \begin{tabular}{|c|c|l|} \hline If taxable income is over: & But not over: & \multicolumn{1}{|c|}{ The tax is: } \\ \hline$0 & $14,200 & 10% of taxable income \\ \hline$14,200 & $54,200 & $1,420 plus 12% of the excess over $14,200 \\ \hline$54,200 & $86,350 & $6,220 plus 22% of the excess over $54,200 \\ \hline$86,350 & $164,900 & $13,293 plus 24% of the excess over $86,350 \\ \hline$164,900 & $209,400 & $32,145 plus 32% of the excess over $164,900 \\ \hline$209,400 & $523,600 & $46,385 plus 35% of the excess over $209,400 \\ \hline$523,600 & - & $156,355 plus 37% of the excess over $523,600 \\ \hline \end{tabular} Schedule Y-2-Married Filing Separately \begin{tabular}{|c|c|l|} \hline If taxable income is over: & But not over: & \multicolumn{1}{c|}{ The tax is: } \\ \hline$0 & $9,950 & 10% of taxable income \\ \hline$9,950 & $40,$25 & $995 plus 12% of the excess over $9,950 \\ \hline$40,525 & $86,375 & $4,664 plus 22% of the excess over $40,525 \\ \hline$86,375 & $164,925 & $14,751 plus 24% of the excess over $86,375 \\ \hline$164,925 & $209,425 & $33,603 plus 32% of the excess over $164,925 \\ \hline$209,425 & $314,150 & $47,843 plus 35% of the excess over $209,425 \\ \hline$314,150 & - & $84,496,75 plus 37% of the excess over $314,150 \\ \hline \end{tabular} Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $100,000 in deductions? (For all requirements, round your answers to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Introduction To Concepts Methods And Uses

Authors: Sidney Davidson, Roman L. Weil, Clyde P. Stickney

2nd Edition

0030452961, 978-0030452963

More Books

Students also viewed these Accounting questions