Income Taxes (15 points)

The effective income tax rate is defined as the percentage of taxes paid in relations to a tax payer's gross income. Calculate the effective tax rate for a person with the following profile. Please include your calculation in your response.

• Gross income of $60,000.00
• Number of exemptions: 2 (assume $3,500.00/exemption)
• Allowed itemized deductions:
• Donations: $1,000
• Mortgage interest: $6,500
• State and local taxes: $500.00
• Standardized deduction: $6,000
• Total tax credits: $1,600.00

Note: Pleaseround your answer to 2 decimal places.

Tax brackets:

Between But Not Over Tax Rate

$0 $5,500 0%

$5,501 $26,250 10%

$26,251 $63,550 15%

$63,551 $132,600 27%

$132,601 $288,350 35%

$288,351 ----- 38.6%