Jack and Jill file a joint tax return.  They have taxable income (excluding the following items) of $98,000. They also have qualified dividends of $7,000 and net long-term capital losses of $5,000.  What is their total tax liability for 2020?

 
Tim is a single taxpayer with taxable income of $148,000.  What is Tim's marginal tax rate and effective tax rate?  Explain why it is important Tim know what they are what he would use them for.

Jordan has a marginal tax rate of 38%. She is contemplating several different investments.  She could invest in a corporate bond that earns 8%, a municipal bond that earns 6.8%, or stocks that provide dividends at a yield of 7%. The dividends are taxed at a preferential rate of 15%. Explain what her best option is compared to the other options.  Support your decision with calculations where appropriate.