Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scot and Vidia, married taxpayers, earn $290,000 in taxable income and $12,500 in interest from an investment in City of Tampa bonds. Using the U.S.

image text in transcribed
image text in transcribed
Scot and Vidia, married taxpayers, earn $290,000 in taxable income and $12,500 in interest from an investment in City of Tampa bonds. Using the U.S. tax rate schedule for married fling jointly, how much federal tax will they owe? What is thelr average tax rate? What is their effective tax rate? What is their current marginal tax rate? (Do not found intermediate calculations. Round "Average tax rate" & "Effective tax rate" to 2 decimal places) Federal tax Average tax rato Effective tax rate Marginal tax rate % % % Individuals Schedule X-Single If taxable income is over:But not over: The tax is: S 0 $ 9,950 10% of taxable income $9.950 $ 40,525 $995 plus 12% of the excess over $9,950 $ 40,525 S 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 S 164,925 $ 209,425 $33,603 plus 32% of the excess over $164.925 $ 209,425 $ 523,600 47,843 plus 35% of the excess over $209,425 S 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: S 0 $ 19,900 10% of taxable income $ 19.900 S 81,050 $1.990 plus 12% of the excess over $19,900 S 81,050 $ 172,750 $9,328 plus 22% of the excess over $81,050 S 172,750 $ 329,850 $29,502 plus 24% of the excess over $172,750 S 329,850 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 895,686 plus 35% of the excess over $418,850 S 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: S 0 $ 14,200 10% of taxable income S 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 S 54,200 S 86,350 S6,220 plus 22% of the excess over $54,200 S 86,350 S 164,900 $13,293 plus 24% of the excess over $86,350 $ 164,900 S 209,400 $32,145 plus 32% of the excess over $164.900 S 209,400 S 523,600 $46,385 plus 35% of the excess over $209,400 S 523,600 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services An Applied Approach

Authors: Iris Stuart

1st edition

73404004, 978-0073404004

More Books

Students also viewed these Accounting questions

Question

Are the paragraphs of an appropriate length?

Answered: 1 week ago