4:) Jorge and Anita, married taxpayers, earn $147,000 in taxable income and $59,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly).

Required: If Jorge and Anita earn an additional $109,500 of taxable income, what is their marginal tax rate on this income? What is their marginal rate if, instead, they report an additional $109,500 in deductions?

(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)

2020 Tax Rate Schedules Individuals Schedule X-Single

If taxable income is over: But not over: The tax is: $0 $9,875 10% of taxable income $9,875 $40,125 $987.50 plus 12% of the excess over $9,875 $40,125 $85,525 $4,617.50 plus 22% of the excess over $40,125 $85,525 $163,300 $14,605.50 plus 24% of the excess over $85,525 $163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 $518,400 $47,367.50 plus 35% of the excess over $207,350 $518,400 $156,235 plus 37% of the excess over $518,400

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $0 $19,750 10% of taxable income $19,750 $80,250 $1,975 plus 12% of the excess over $19,750 $80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171,050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94,735 plus 35% of the excess over $414,700 $622,050 $167,307.50 plus 37% of the excess over $622,050

Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $0 $14,100 10% of taxable income $14,100 $53,700 $1,410 plus 12% of the excess over $14,100 $53,700 $85,500 $6,162 plus 22% of the excess over $53,700 $85,500 $163,300 $13,158 plus 24% of the excess over $85,500 $163,300 $207,350 $31,830 plus 32% of the excess over $163,300 $207,350 $518,400 $45,926 plus 35% of the excess over $207,350 $518,400 $154,793.50 plus 37% of the excess over $518,400

Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $0 $9,875 10% of taxable income $9,875 $40,125 $987.50 plus 12% of the excess over $9,875 $40,125 $85,525 $4,617.50 plus 22% of the excess over $40,125 $85,525 $163,300 $14,605.50 plus 24% of the excess over $85,525 $163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 $311,025 $47,367.50 plus 35% of the excess over $207,350 $311,025 $83,653.75 plus 37% of the excess over $311,025