Campbell, a single taxpayer, earns $242,000 in taxable income and $11,000 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.)
 

Required:

 

How much federal tax will she owe?
What is her average tax rate?
What is her effective tax rate?
What is her current marginal tax rate?
 

 

2.  Campbell, a single taxpayer, earns $412,000 in taxable income and $2,240 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule).

 

  Required:

If Campbell earns an additional $15,600 of taxable income, what is her marginal tax rate on this income?
What is her marginal rate if, instead, she had $15,600 of additional deductions?

 

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