Question
4. Problem 1-39 (LO 1-3) (Algo) Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $
4. Problem 1-39 (LO 1-3) (Algo)
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 19,900 | 10% of taxable income |
$ 19,900 | $ 81,050 | $1,990 plus 12% of the excess over $19,900 |
$ 81,050 | $ 172,750 | $9,328 plus 22% of the excess over $81,050 |
$ 172,750 | $ 329,850 | $29,502 plus 24% of the excess over $172,750 |
$ 329,850 | $ 418,850 | $67,206 plus 32% of the excess over $329,850 |
$ 418,850 | $ 628,300 | $95,686 plus 35% of the excess over $418,850 |
$ 628,300 | $168,993.50 plus 37% of the excess over $628,300 |
Jorge and Anita, married taxpayers, earn $155,000 in taxable income and $45,000 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 $105,000 of taxable income, what is their marginal tax rate on this income?
b. What is their marginal rate if, instead, they report an additional $105,000 in deductions?
(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)
a. Marginal tax rate | % |
b. Marginal Tax Rate | % |
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