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The Johnsons filed married, joint returns. They had taxable income of 170,000 in 2020. (See attached). The city tax rate is 3.976% and state tax
The Johnsons filed married, joint returns. They had taxable income of 170,000 in 2020. (See attached). The city tax rate is 3.976% and state tax rate is 6.21%. What was their total effective (marginal) tax rate? Assume they had $10,000 in short term capital gains and $12,000 in long term taxable gains. What are their total taxes?
Table 1.2020 Tax Brackets and Rates h For Single Rate Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable income Over For Heads of Households, Taxable Income Over 10% $0 $0 $0 12% $9,875 $19,750 $14,100 22% $40, 125 $80,250 $53,700 24% $85,525 $171,050 $85,500 32% $ 163,300 $326,600 $ 163,300 35% $207,350 $414,700 $207,350 37% $518,400 $622,050 $518,400 Source: Internal Revenue Service Table 1.2020 Tax Brackets and Rates h For Single Rate Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable income Over For Heads of Households, Taxable Income Over 10% $0 $0 $0 12% $9,875 $19,750 $14,100 22% $40, 125 $80,250 $53,700 24% $85,525 $171,050 $85,500 32% $ 163,300 $326,600 $ 163,300 35% $207,350 $414,700 $207,350 37% $518,400 $622,050 $518,400 Source: Internal Revenue Service
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