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Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table
Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was $183,000. Do not round intermediate calculation.
What is their federal tax liability? Round your answer to the nearest dollar. $
What is their marginal tax rate? Round your answer to the nearest whole number. %
What is their average tax rate? Round your answer to two decimal places.? %
Please answer this question ASAP correctly
Single Individuals If Your Taxable Income Is Up to $9,875 $9,875-$40,125 $40,125-$85,525 $85,525-$163,300 $163,300-$207,350 $207,350-$518,400 Over $518,400 Married Couples Filing Joint Returns If Your Taxable Income Is You Pay This Amount on the Base of the Bracket $ Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-$326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 0.00 987.50 4,617.50 14,605.50 33,271.50 47,367.50 156,235.00 You Pay This Amount on the Base of the Bracket $ 0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 2020 Individual Tax Rates Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 30.1 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0 Notes: 1. These are the 2020 tax rates that will be paid on tax returns due April 15, 2021. The income ranges at which each tax rate takes effect are indexed with inflation, so they change each year. 2. The average tax rates are always below the marginal rates, but in 2020 the average at the top of the brackets approaches 37% as taxable income rises without limit. 3. In 2018, the personal exemption for the taxpayer and dependents was eliminated. With the deduction limitation on state and local property, income, and sales taxes and the existence of payroll taxes (Social Security and Medicare taxes), the 2020 effective tax rate will be higher than 37%. TABLE 3.5Step by Step Solution
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