Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $28,250. Their total income from wages is $163,000. Assume the following tax table is applicable:

Married Couples Filing Joint Returns

If Your Taxable Income Is You Pay This Amount on the Base of the Bracket Plus This Percentage on the Excess over the Base Average Tax Rate at Top of Bracket
Up to $19,750 $0.00 10.0% 10.0%
$19,750-$80,250 1,975.00 12.0 11.5
$80,250-$171,050 9,235.00 22.0 17.1
$171,050-$326,600 29,211.00 24.0 20.4
$326,600-$414,700 66,543.00 32.0 22.8
$414,700-$622,050 94,735.00 35.0 26.9
Over $622,050 167,307.50 37.0 37.0

What is their marginal tax rate?

a. 12.0%
b. 32.0%
c. 24.0%
d. 35.0%
e. 22.0%

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 Shenanigans How To Detect Accounting Gimmicks And Fraud In Financial Reports

Authors: Howard M. Schilit, Jeremy Perler, Yoni Engelhart

4th Edition

126011726X, 9781260117264

More Books

Students also viewed these Finance questions

Question

What lifestyle traits does your key public have?

Answered: 1 week ago