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Posted on Sep 13, 2024

Jorge and Anita, married taxpayers, earn ( $ 150,000 ) in taxable income and ( $ 40,000 ) in interest from an investment in City

Jorge and Anita, married taxpayers, earn \$ \\$ 150,000 \$ in taxable income and \$ \\$ 40,000 \$ 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 \$ \\$ 100,000 \$ of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional \$ \\$ 100,000 \$ in deductions? Note: For all requirements, round your answers to 2 decimal places. Individuals Schedule X-Single \\begin{tabular}{|c|c|l|} \\hline If taxable income is over: & But not over: & \\multicolumn{1}{|c|}{ The tax is: } \\\\ \\hline\$ \\$ \\quad 0 \$ & \$ \\$ 11,000 \$ & \10 of taxable income \\\\ \\hline\$ \\$ 11,000 \$ & \$ \\$ 44,725 \$ & \$ \\$ 1,100 \$ plus \12 of the excess over \$ \\$ 11,000 \$ \\\\ \\hline\$ \\$ 44,725 \$ & \$ \\$ 95,375 \$ & \$ \\$ 5,147 \$ plus \22 of the excess over \$ \\$ 44,725 \$ \\\\ \\hline\$ \\$ 95,375 \$ & \$ \\$ 182,100 \$ & \$ \\$ 16,290 \$ plus \24 of the excess over \$ \\$ 95,375 \$ \\\\ \\hline\$ \\$ 182,100 \$ & \$ \\$ 231,250 \$ & \$ \\$ 37,104 \$ plus \32 of the excess over \$ \\$ 182,100 \$ \\\\ \\hline\$ \\$ 231,250 \$ & \$ \\$ 578,125 \$ & \$ \\$ 52,832 \$ plus \35 of the excess over \$ \\$ 231,250 \$ \\\\ \\hline\$ \\$ 578,125 \$ & & \$ \\$ 174,238,25 \$ plus \37 of the excess over \$ \\$ 578,125 \$ \\\\ \\hline \\end{tabular} Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse \\begin{tabular}{|c|c|l|} \\hline If taxable income is over: & But not over: & \\multicolumn{1}{c|}{ The tax is: } \\\\ \\hline S 0 & \$ \\$ 22,000 \$ & \10 of taxable income \\\\ \\hline\$ \\$ 22,000 \$ & \$ \\$ 89,450 \$ & \$ \\$ 2,200 \$ plus \12 of the excess over \$ \\$ 22,000 \$ \\\\ \\hline\$ \\$ 89,450 \$ & \$ \\$ 190,750 \$ & \$ \\$ 10,294 \$ plus \22 of the excess over \$ \\$ 89,450 \$ \\\\ \\hline\$ \\$ 190,750 \$ & \$ \\$ 364,200 \$ & \$ \\$ 32,580 \$ plus \24 of the excess over \$ \\$ 190,750 \$ \\\\ \\hline\$ \\$ 364,200 \$ & \$ \\$ 462,500 \$ & \$ \\$ 74,208 \$ plus \32 of the excess over \$ \\$ 364,200 \$ \\\\ \\hline\$ \\$ 462,500 \$ & \$ \\$ 693,750 \$ & \$ \\$ 105,664 \$ plus \35 of the excess over \$ \\$ 462,500 \$ \\\\ \\hline\$ \\$ 693,750 \$ & & \$ \\$ 186,601.5 \$ plus \37 of the excess over \$ \\$ 693,750 \$ \\\\ \\hline \\end{tabular} Schedule Z-Head of Household \\begin{tabular}{|c|c|l|} \\hline If taxable income is over: & But not over: & \\multicolumn{1}{|c|}{ The tax is: } \\\\ \\hline \\$ 0 & \$ \\$ 15,700 \$ & \10 of taxable income \\\\ \\hline\$ \\$ 15,700 \$ & \$ \\$ 59,850 \$ & \$ \\$ 1,570 \$ plus \12 of the excess over \$ \\$ 15,700 \$ \\\\ \\hline\$ \\$ 59,850 \$ & \$ \\$ 95,350 \$ & \$ \\$ 6,868 \$ plus \22 of the excess over \$ \\$ 59,850 \$ \\\\ \\hline\$ \\$ 95,350 \$ & \$ \\$ 182,100 \$ & \$ \\$ 14,678 \$ plus \24 of the excess over \$ \\$ 95,350 \$ \\\\ \\hline\$ \\$ 182,100 \$ & \$ \\$ 231,250 \$ & \$ \\$ 35,498 \$ plus \32 of the excess over \$ \\$ 182,100 \$ \\\\ \\hline\$ \\$ 231,250 \$ & \$ \\$ 578,100 \$ & \$ \\$ 51,226 \$ plus \35 of the excess over \$ \\$ 231,250 \$ \\\\ \\hline\$ \\$ 578,100 \$ & & \$ \\$ 172,623.5 \$ plus \37 of the excess over \$ \\$ 578,100 \$ \\\\ \\hline \\end{tabular}