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Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions
Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $25,750. Their total income from wages is $169,100. Assume the following tax table is applicable: Married Couples Filing Joint Returns If Your Taxable Income Is Up to $19,050 $19,050-$77,400 $0.00 Over $600,000 Base of the Bracket $77,400-$165,000 8,907.00 $165,000-$315,000 28,179.00 $315,000-$400,000 64,179.00 1,905.00 $400,000-$600,000 91,379.00 What is their average tax rate? Amount on the You Pay This 161,379.00 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0
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