LO 1-3 40.Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. Using the U.S. tax rate schedule for married filing jointly (see Example 1-3), 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? LO 1-3 41. Using the facts in problem 40, if Scot and Vidia earn an additional $80,000 of taxable income, what is their marginal tax rate on this income? How would your answer differ if they, instead, had $80,000 of additional deductions? 2021 Tax Rate Schedules Individuals Schedule XSingle If taxable income is But not over: over: The tax is: $ 0 $ 9.950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164,925 $14,751 plus 24% of the excess over $86,375 $164.925 $209,425 $33,603 plus 32% of the excess over $164,925 $209,425 $523,600 547,843 plus 35% of the excess over $209,425 $523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule 7Head of Household If taxable income is But not over: over: The tax is: $ $ 14,200 10% of taxable income $ 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 S 54,200 $ 86,350 $6,220 plus 22% of the excess over $54.200 $ 86,350 $164,900 $13,293 plus 24% of the excess over 586,350 $164,900 $209,400 $32,145 plus 32% of the excess over $164.900 $209,400 $523,600 $46,385 plus 35% of the excess over $209,400 $523,600 $156,355 plus 37% of the excess over S523,600 over: Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is But not over: over: The tax is: $0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $172,750 $9,328 plus 22% of the excess over $81,050 $172,750 $329,850 $29,502 plus 24% of the excess over $172,750 $329,850 $418,850 $67,206 plus 32% of the excess over $329,850 $418,850 $628,300 $95,686 plus 35% of the excess over $418,850 $628,300 $ $168.993.50 plus 37% of the excess over $628,300 Schedule Y-2Married Filing Separately If taxable income is But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9.950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164,925 $14,751 plus 24% of the excess over $86,375 $164.925 $209,425 $33,603 plus 32% of the excess over $164.925 $209,425 $314,150 $47,843 plus 35% of the excess over $209,425 $314,150 $84,496.75 plus 37% of the excess over $314.150 Estates and Trusts If taxable income is over: $ 0 $ 2,650 But not over: $ 2,650 $ 9,550 The tax is: : 10% of taxable income $265 plus 24% of the excess over $2,650 $1,921 plus 35% of the excess over 59,550 $3,146 plus 37% of the excess over $13,050 $ 9.550 $13.050 $13,050