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Jorge and Anita, married taxpayers, earn $143,500 in taxable income and $52,000 in interest from an investment in City of Heflin bonds. (Use the U.S.
Jorge and Anita, married taxpayers, earn $143,500 in taxable income and $52,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required a. If Jorge and Anita earn an additional $106,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $106,000 in deductions? For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) a. Marginal tax rate Marginal tax rate Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: S 19,050 S 77.400 S165.000 S315,000 $400,000 S600,000 $ 19,050 $ 77,400 $165,000 $315,000 $400,000 $600,000 110% of taxable income | $1,905 plus 12% of the excess over $19,050 |$8907 plus 22% of the excess over $77,400 |S28, 179 plus 24% of the excess over $165,000 | S64, 179 plus 32% of the excess over $315,000 | S91379 plus 35% ofthe excess over S400.000 S 161,379 plus 37% ofthe excess over S600.000
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