The Lees, a family of two adults and two dependent children under age 16, had a gross annual income of

$72 comma 000.00

for

2020

.

Determine their standard deduction and child tax credit amounts, as well as their marginal and average tax rates, assuming their filing status is married filing jointly. Why is their average tax rate lower than their marginal rate?

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Part 1

Assuming the Lees' filing status is married filing jointly spouse, their standard deduction for the

2020

tax year is

$enter your response here

.

(Enter the amount to the nearest cent.) Click the following link for a standard deduction table:

LOADING...

.

Part 2

Their taxable income for the

2020

tax year is

$enter your response here

.

(Round to the nearest cent.)

Part 3

Their child tax credit amount for the

2020

tax year is

$enter your response here

.

(Round to the nearest cent.)

Part 4

The Lees' total income tax due for the

2020

tax year is

$enter your response here

.

(Round to the nearest cent.) Click the following link for the tax rates and brackets table:

LOADING...

.

Part 5

Their marginal federal income tax rate for the

2020

tax year is

enter your response here

%.

(Round to the nearest whole percent.)

Part 6

Their average federal income tax rate for the

2020

tax year is

enter your response here

%.

(Round to two decimal places.)

Part 7

Why is their average tax rate lower than their marginal rate?

"The Lees' average tax rate is less than their marginal rate because some of their income is not taxed (the standard deduction of $24,800) and some is taxed at a lower rate (the first $19,750 of taxable income is taxed at 10%)."

The statement above is

false

true

.

(Select from the drop-down menu.)