Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jorge and Anita, married taxpayers, earn $190,000 in taxable income and $25,000 in Interest from an investment in City of Heflin bonds. Using the U.S.

image text in transcribed
image text in transcribed
image text in transcribed
Jorge and Anita, married taxpayers, earn $190,000 in taxable income and $25,000 in Interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Federal tax Average tax rate Efective tax rate Marginal tax rate 2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over:But not over: The tax is: 0 $ 9.875 10% of taxable income $ 9.875 $ 40,125 $987.50 plus 12% of the excess over $9.875 $ 40,125 $ 85525 $4,617.50 plus 22% of the excess over $40,125 $ 85,525 $163,300 $14,605.50 plus 24% of the excess over $85,525 $163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 $518,400 S47367.50 plus 35% of the excess over $207,350 $518,400 $156,235 plus 37% of the excess over $518,400 Schedule Y-1. Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,750 10% of taxable income $ 19,750 $ 80,250 $1,975 plus 12% of the excess over $19,750 $ 80,250 $171,050 59.235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171.050 $326,600 $414.700 566,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94,735 plus 35% of the excess over $414 700 S622.050 S167,307 50 plus 37% of the excess over $622,050 Schedule Z-Head of Household IT taxable income is over: But not over: S 0 $ 14,100 $ 14,100 $ 53,700 $ 53,700 $ 85,500 The tax is: 10% of taxable income $1,410 plus 12% of the excess over $14,100 $6,162 plus 22% of the excess over $53.700 If taxable income is over: But not over: The tax is: $ 0 $ 19,750 10% of taxable income $ 19,750 S 80,250 $1975 plus 12% of the excess over $19,750 $ 80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171,050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414.700 $622,050 594.735 plus 35% of the excess over $414,700 $622,050 $167 307 50 plus 37% of the excess over $622,050 Schedule Z-Head of Household Ir taxable income is over: But not over: The tax is: $ 0 $ 14,100 10% of taxable income $ 14,100 $ 53,700 $1410 plus 12% of the excess over $14,100 $ 53,700 $ 85.500 $6,162 plus 22% of the excess over $53.700 $ 85,500 $163,300 $13,158 plus 24% of the excess over $85.500 $163,300 $207 350 $31.830 plus 32% of the excess over $163,300 $207,350 $518 400 $45 926 plus 35% of the excess over $207 350 $518,400 $154,793.50 plus 37 of the excess over $518.400 Schedule Y-2-Married Filing Separately If taxable income is over:But not over: The tax is: $ 0 $ 9,875 1056 of taxable income $ 9.875 $ 40,125 5987 50 plus 12% of the excess over $9.875 $ 40,125 $ 85,525 $4,617.50 plus 22% of the excess over $40,125 $ 85,525 $163,300 $14.605 50 plus 24% of the excess over $85 525 $163,300 $207 350 $33271.50 plus 32% of the excess over $163,300 $207,350 $311,025 S42 367 50 plus 35% of the excess over $207,350 $311025 $83,653,75 plus 37% of the excess over $311,025

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2022

Authors: Jeanette Landin

8th Edition

126072879X, 9781260728798

More Books

Students also viewed these Accounting questions

Question

=+a) What is the center line for the R chart?

Answered: 1 week ago

Question

What are the potential strengths of group discussion?

Answered: 1 week ago

Question

Why are groups and teams becoming increasingly popular?

Answered: 1 week ago