1. Suppose the Lee family, which includes two adults and two dependent children, ends up with a gross annual income of $83,000 for 2020. Assume that with two children under age 16 the Lees can claim a total child tax credit of $5,920. In 2020, Rachel Lee had $2,000 of her income automatically deposited into a 401k defined contribution savings plan provided by her employer. Using Google (or other search engine) to locate needed 2020 tax-rate information, answer the tax questions below.

1. The standard deduction for the Lee family is: $__________________________

2. The Lee family adjusted gross income is: $ __________________________

(show your calculation)

3. The Lee family taxable income is: $__________________________

(show your calculation)

4. Lee household tax liability is: $__________________________

(show your calculation)

5. The Lees average tax rate is: ______% (as a % of total gross income; show calculation)

6. The Lees marginal tax rate is: ______%

7. Is the marginal tax rate greater than, equal to, or less than the average tax rate? Explain why.