Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds (Use the U S tax rate schedule ) If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income What is his marginal rate if, instead, he had $40,000 of additional deductions 2020 Tax Rate Schedules Individuals Schedule X Single If taxable income is over But not over The tax is $ 0 $ 9,875 10 of taxable income $ 9,875 $ 40,125 $987 50 plus 12 of the excess over $9,875 $ 40,125 $ 85,525 $4,617 50 plus 22 of the excess over $40,125 $ 85,525 $163,300 $14,605 50 plus 24 of the excess over $85,525 $163,300 $207,350 $33,271 50 plus 32 of the excess over $163,300 $207,350 $518,400 $47,367 50 plus 35 of the excess over $207,350 $518,400 $156,235 plus 37 of the excess over $518,400 Schedule Y 1 Married Filing Jointly or Qualifying Widow(er) If taxable income is over But not over The tax is $ 0 $ 19,750 10 of taxable income $ 19,750 $ 80,250 $1,975 plus 12 of the excess over $19,750 $ 80,250 $171,050 $9,235 plus 22 of the excess over $80,250 $171,050 $326,600 $29,211 plus 24 of the excess over $171,050 $326,600 $414,700 $66,543 plus 32 of the excess over $326,600 $414,700 $622,050 $94,735 plus 35 of the excess over $414,700 $622,050 $167,307 50 plus 37 of the excess over $622,050 Schedule Z Head of Household If taxable income is over But not over The tax is $ 0 $ 14,100 10 of taxable income $ 14,100 $ 53,700 $1,410 plus 12 of the excess over $14,100 $ 53,700 $ 85,500 $6,162 plus 22 of the excess over $53,700 $ 85,500 $163,300 $13,158 plus 24 of the excess over $85,500 $163,300 $207,350 $31,830 plus 32 of the excess over $163,300 $207,350 $518,400 $45,926 plus 35 of the excess over $207,350 $518,400 $154,793 50 plus 37 of the excess over $518,400 Schedule Y 2 Married Filing Separately If taxable income is over But not over The tax is $ 0 $ 9,875 10 of taxable income $ 9,875 $ 40,125 $987 50 plus 12 of the excess over $9,875 $ 40,125 $ 85,525 $4,617 50 plus 22 of the excess over $40,125 $ 85,525 $163,300 $14,605 50 plus 24 of the excess over $85,525 $163,300 $207,350 $33,271 50 plus 32 of the excess over $163,300 $207,350 $311,025 $47,367 50 plus 35 of the excess over $207,350 $311,025 $83,653 75 plus 37 of the excess over $311,025

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Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)

If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
What is his marginal rate if, instead, he had $40,000 of additional deductions?

2020 Tax Rate Schedules

Individuals

Schedule X-Single

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

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$ 0	$ 19,750	10% of taxable income
$ 19,750	$ 80,250	$1,975 plus 12% of the excess over $19,750
$ 80,250	$171,050	$9,235 plus 22% of the excess over $80,250
$171,050	$326,600	$29,211 plus 24% of the excess over $171,050
$326,600	$414,700	$66,543 plus 32% of the excess over $326,600
$414,700	$622,050	$94,735 plus 35% of the excess over $414,700
$622,050		$167,307.50 plus 37% of the excess over $622,050

Schedule Z-Head of Household

If taxable income is over:	But not over:	The tax is:
$ 0	$ 14,100	10% of taxable income
$ 14,100	$ 53,700	$1,410 plus 12% of the excess over $14,100
$ 53,700	$ 85,500	$6,162 plus 22% of the excess over $53,700
$ 85,500	$163,300	$13,158 plus 24% of the excess over $85,500
$163,300	$207,350	$31,830 plus 32% of the excess over $163,300
$207,350	$518,400	$45,926 plus 35% of the excess over $207,350
$518,400		$154,793.50 plus 37% of the excess over $518,400

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,875	10% of taxable income
$ 9,875	$ 40,125	$987.50 plus 12% of the excess over $9,875
$ 40,125	$ 85,525	$4,617.50 plus 22% of the excess over $40,125
$ 85,525	$163,300	$14,605.50 plus 24% of the excess over $85,525
$163,300	$207,350	$33,271.50 plus 32% of the excess over $163,300
$207,350	$311,025	$47,367.50 plus 35% of the excess over $207,350
$311,025		$83,653.75 plus 37% of the excess over $311,025