eBook Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: - She received $138,000 in salary.
- She received $14,500 of dividend income.
- She received $4,500 of interest income on Home Depot bonds.
- She received $21,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $8,200.
- She received $15,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,600.
- Mary only has allowable itemized deductions of $4,600, so she will take the standard deduction of $12,400. The standard deduction is subtracted from her gross income to determine her taxable income.
Assume that her tax rates are based on Table 3.5. -
What is Mary's federal tax liability? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. $ -
What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place. % -
What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal places. % |
Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 24.0 20.4 32.0 22.8 35.0 30.1 37.0 37.0 Single Individuals You Pay This If Your Taxable Amount on the Income Is Base of the Bracket Up to $9,875 $ 0.00 $9,875-540,125 987.50 $40,125-$85,525 4,61750 $85,525-5163,300 14,605.50 $163,300-$207,350 33,271.50 $207,350-$518,400 47,367 50 Over $518,400 156,235.00 Married couples Filing Joint Returns You Pay This If Your Taxable Amount on the Income Is Base of the Bracket Up to $19,750 $ 0.00 $19,750-$80,250 1,975.00 $80,250-$171,050 9,235.00 $171,050-$326,600 29,211.00 $326,600-$414,700 66,543.00 $414,700-$622,050 94,735.00 Over $622,050 167,307.50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 24.0 20.4 32.0 22.8 35.0 26.9 37.0 37.0