1. Calculate the federal income tax liability, marginal tax rate, and average tax rate for each of the following scenarios. Assume the following for all scenarios: all income is traditionally earned, the maximum allowable standard deduction is taken, and no other deductions/credits are applied.

Individual Income Tax Brackets (2020) Head of Single, taxable Joint, taxable Household, taxable income over: income over: income over: Marginal Tax Rate 10% $0 $0 $0 12% $9,875 $19,750 $14,100 22% $40,125 $80,250 $53,700 24% $85,525 $171,050 $85,500 32% $163,300 $326,600 $163,300 35% $207,350 $414,700 $207,350 37% $518,400 $622,050 $518,400 Standard Deduction Amounts (2020) Filing Status Deduction Amount $12,400 Single Married Filing Jointly $24,800 Head of Household $18,650 Long-term Capital Gains & Qualified Dividends (2020) Tax Rate Single Joint Head of Household 0% Under $40,000 Under $80,000 Under $53,600 15% $40,000 $53,600 $80,000 $496,600 20% $441,450 $469,050 Additional 3.8% Net Investment Income Tax for MAGI over $200,000 / $250,000/$200,000 1. Calculate the federal income tax liability, marginal tax rate, and average tax rate for each of the following scenarios. Assume the following for all scenarios: all income is traditionally earned, the maximum allowable standard deduction is taken, and no other deductions/credits are applied. Single Marginal Income Tax Rate Taxable Income Gross Income Average Rate Joint Marginal Income Tax Rate Taxable Income Average Rate $40,000 $75,000 137,600 $150,000 $500,000 $1,000,000 $10,000,000 Individual Income Tax Brackets (2020) Head of Single, taxable Joint, taxable Household, taxable income over: income over: income over: Marginal Tax Rate 10% $0 $0 $0 12% $9,875 $19,750 $14,100 22% $40,125 $80,250 $53,700 24% $85,525 $171,050 $85,500 32% $163,300 $326,600 $163,300 35% $207,350 $414,700 $207,350 37% $518,400 $622,050 $518,400 Standard Deduction Amounts (2020) Filing Status Deduction Amount $12,400 Single Married Filing Jointly $24,800 Head of Household $18,650 Long-term Capital Gains & Qualified Dividends (2020) Tax Rate Single Joint Head of Household 0% Under $40,000 Under $80,000 Under $53,600 15% $40,000 $53,600 $80,000 $496,600 20% $441,450 $469,050 Additional 3.8% Net Investment Income Tax for MAGI over $200,000 / $250,000/$200,000 1. Calculate the federal income tax liability, marginal tax rate, and average tax rate for each of the following scenarios. Assume the following for all scenarios: all income is traditionally earned, the maximum allowable standard deduction is taken, and no other deductions/credits are applied. Single Marginal Income Tax Rate Taxable Income Gross Income Average Rate Joint Marginal Income Tax Rate Taxable Income Average Rate $40,000 $75,000 137,600 $150,000 $500,000 $1,000,000 $10,000,000