Chuck, a single taxpayer, earns $87,000 in taxable income and $31,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule:) Required: a. If Chuck earns an additional $60,250 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $60,250 of additional deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) a. b. Marginal tax rate Marginal tax rate 2018 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: 50 $ 9,525 10% of taxable income $ 9,525 $ 38,700 5952.50 plus 12% of the excess over $9,525 $ 38,700 $ 82,500 $4.453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14.089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500 $200,000 $500,000 $45,689 50 plus 35% of the excess over $200,000 $500,000 - $150.689.50 plus 37% of the excess over $500,000 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,050 10% of taxable income $ 19,050 $ 77,400 $1,905 plus 12% of the excess over $19,050 $ 77,400 $165,000 $8.907 plus 22% of the excess over $77,400 $165,000 $315,000 $28.179 plus 24% of the excess over $165,000 $315,000 $400,000 $64.179 plus 32% of the excess over $315,000 $400,000 $600,000 $91,379 plus 35% of the excess over $400,000 $600,000 - $161,379 plus 37% of the excess over $600,000 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,600 10% of taxable income $ 13,600 $ 51,800 $1,360 plus 12% of the excess over $13,600 $ 51,800 $ 82.500 $5,944 plus 22% of the excess over $51,800 $ 82,500 $157,500 $12.698 plus 24% of the excess over $82,500 $157,500 $200,000 $30.698 plus 32% of the excess over $157,500 $200,000 $500,000 $44.298 plus 35% of the excess over $200,000 $500,000 - $149.298 plus 37% of the excess over $500,000 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 9,525 10% of taxable income $ 9,525 $ 38,700 5952.50 plus 12% of the excess over 59,525 $ 38,700 $ 82,500 $4.453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14.089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500 $200,000 $300,000 $45,689.50 plus 35% of the excess over $200,000 $300,000 - $80.689.50 plus 37% of the excess over $300,000
