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Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bonds. (Use the U.S.
Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 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?
2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 10,275 | 10% of taxable income |
$ 10,275 | $ 41,775 | $1,027.50 plus 12% of the excess over $10,275 |
$ 41,775 | $ 89,075 | $4,807.50 plus 22% of the excess over $41,775 |
$ 89,075 | $ 170,050 | $15,213.50 plus 24% of the excess over $89,075 |
$ 170,050 | $ 215,950 | $34,647.50 plus 32% of the excess over $170,050 |
$ 215,950 | $ 539,900 | $49,335.50 plus 35% of the excess over $215,950 |
$ 539,900 | $162,718 plus 37% of the excess over $539,900 |
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 20,550 | 10% of taxable income |
$ 20,550 | $ 83,550 | $2,055 plus 12% of the excess over $20,550 |
$ 83,550 | $ 178,150 | $9,615 plus 22% of the excess over $83,550 |
$ 178,150 | $ 340,100 | $30,427 plus 24% of the excess over $178,150 |
$ 340,100 | $ 431,900 | $69,295 plus 32% of the excess over $340,100 |
$ 431,900 | $ 647,850 | $98,671 plus 35% of the excess over $431,900 |
$ 647,850 | $174,253.50 plus 37% of the excess over $647,850 |
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 14,650 | 10% of taxable income |
$ 14,650 | $ 55,900 | $1,465 plus 12% of the excess over $14,650 |
$ 55,900 | $ 89,050 | $6,415 plus 22% of the excess over $55,900 |
$ 89,050 | $ 170,050 | $13,708 plus 24% of the excess over $89,050 |
$ 170,050 | $ 215,950 | $33,148 plus 32% of the excess over $170,050 |
$ 215,950 | $ 539,900 | $47,836 plus 35% of the excess over $215,950 |
$ 539,900 | $161,218.50 plus 37% of the excess over $539,900 |
Schedule Y-2-Married Filing Separately
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 10,275 | 10% of taxable income |
$ 10,275 | $ 41,775 | $1,027.50 plus 12% of the excess over $10,275 |
$ 41,775 | $ 89,075 | $4,807.50 plus 22% of the excess over $41,775 |
$ 89,075 | $ 170,050 | $15,213.50 plus 24% of the excess over $89,075 |
$ 170,050 | $ 215,950 | $34,647.50 plus 32% of the excess over $170,050 |
$ 215,950 | $ 323,925 | $49,335.50 plus 35% of the excess over $215,950 |
$ 323,925 | $87,126.75 plus 37% of the excess over $323,925 |
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