R

efer to the individual rate schedules in Appendix C.

Required:

1. What are the tax liability, the marginal tax rate, and the average tax rate for a married couple filing jointly with $65,900 taxable income?
2. What are the tax liability, the marginal tax rate, and the average tax rate for a single individual with $192,800 taxable income?
3. What are the tax liability, the marginal tax rate, and the average tax rate for a head of household with $460,300 taxable income?

APPENDIX C

2021 Income Tax Rates

INDIVIDUAL TAX RATES

Married Filing Jointly and Surviving Spouse

If taxable income is	The tax is
Not over $19,900	10% of taxable income
Over $19,900 but not over $81,050	$1,990.00 + 12% of excess over $19,900
Over $81,050 but not over $172,750	$9,328.00 + 22% of excess over $81,050
Over $172,750 but not over $329,850	$29,502.00 + 24% of excess over $172,750
Over $329,850 but not over $418,850	$67,206.00 + 32% of excess over $329,850
Over $418,850 but not over $628,300	$95,686.00 + 35% of excess over $418,850
Over $628,300	$168,993.50 + 37% of excess over $628,300

Married Filing Separately

If taxable income is	The tax is
Not over $9,950	10% of taxable income
Over $9,950 but not over $40,525	$995.00 + 12% of excess over $9,950
Over $40,525 but not over $86,375	$4,664.00 + 22% of excess over $40,525
Over $86,375 but not over $164,925	$14,751.00 + 24% of excess over $86,375
Over $164,925 but not over $209,425	$33,603.00 + 32% of excess over $164,925
Over $209,425 but not over $314,150	$47,843.00 + 35% of excess over $209,425
Over $314,150	$84,496.75 + 37% of excess over $314,150

Head of Household

If taxable income is	The tax is
Not over $14,200	10% of taxable income
Over $14,200 but not over $54,200	$1,420.00 + 12% of excess over $14,200
Over $54,200 but not over $86,350	$6,220.00 + 22% of excess over $54,200
Over $86,350 but not over $164,900	$13,293.00 + 24% of excess over $86,350
Over $164,900 but not over $209,400	$32,145.00 + 32% of excess over $164,900
Over $209,400 but not over $523,600	$46,385.00 + 35% of excess over $209,400
Over $523,600	$156,355.00 + 37% of excess over $523,600

Single

If taxable income is	The tax is
Not over $9,950	10% of taxable income
Over $9,950 but not over $40,525	$995.00 + 12% of excess over $9,950
Over $40,525 but not over $86,375	$4,664.00 + 22% of excess over $40,525
Over $86,375 but not over $164,925	$14,751.00 + 24% of excess over $86,375
Over $164,925 but not over $209,450	$33,603.00 + 32% of excess over $164,925
Over $209,450 but not over $523,600	$47,843.00 + 35% of excess over $209,425
Over $523,600	$157,804.25 + 37% of excess over $523,600

ESTATE AND TRUST TAX RATES

If taxable income is	The tax is
Not over $2,650	10% of taxable income
Over $2,650 but not over $9,550	$265.00 + 24% of excess over $2,650
Over $9,550 but not over $13,050	$1,921.00 + 35% of excess over $9,550
Over $13,050	$3,146.00 + 37% of excess over $13,050