Jorge and Anita, married taxpayers, earn $404,500 in taxable income and $50,000 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?

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

$ 0	$ 19,050	10% of taxable income
$ 19,050	$ 77,400	$1,905 plus 12% of the excess over $19,050
$ 77,400	$165,000	$8,907 plus 22% of the excess over $77,400
$165,000	$315,000	$28,179 plus 24% of the excess over $165,000
$315,000	$400,000	$64,179 plus 32% of the excess over $315,000
$400,000	$600,000	$91,379 plus 35% of the excess over $400,000
$600,000		$161,379 plus 37% of the excess over $600,000