Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help with both parts! Campbell, a single taxpayer, earns $416,000 in taxable income and $2,320 in interest from an investment in State of New
Need help with both parts!
Campbell, a single taxpayer, earns $416,000 in taxable income and $2,320 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule).
Required:
- If Campbell earns an additional $15,800 of taxable income, what is her marginal tax rate on this income?
- What is her marginal rate if, instead, she had $15,800 of additional deductions?
(For all requirements, do not round intermediate calculations.)
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 | $ 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 | $33,271.50 plus 32% of the excess over $163,300 |
$207,350 | $518,400 | $47,367.50 plus 35% of the excess over $207,350 |
$518,400 | $156,235 plus 37% of the excess over $518,400 |
Step 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