Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Leonardo, who is married but files separately, earns $84,400 of taxable income. He also has $19,400 in city of Tulsa bonds. His wife, Theresa, earns
Leonardo, who is married but files separately, earns $84,400 of taxable income. He also has $19,400 in city of Tulsa bonds. His wife, Theresa, earns $54,400 of taxable income. If Leonardo earned an additional $34,400 of taxable income this year, what would be the marginal tax rate on the extra income for 2021?
Schedule Z-Head of Household \begin{tabular}{|c|c|l|} \hline If taxable income is over: & But not over: & The tax is: \\ \hline$ & $14,200 & 10% of taxable income \\ \hline$14,200 & $54,200 & $1,420 plus 12% of the excess over $14,200 \\ \hline$54,200 & $86,350 & $6,220 plus 22% of the excess over $54,200 \\ \hline$86,350 & $164,900 & $13,293 plus 24% of the excess over $86,350 \\ \hline$164,900 & $209,400 & $32,145 plus 32% of the excess over $164,900 \\ \hline$209,400 & $523,600 & $46,385 plus 35% of the excess over $209,400 \\ \hline$523,600 & - & $156,355 plus 37% of the excess over $523,600 \\ \hline \end{tabular} Schedule Y-2-Married Filing SeparatelyStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started