2021 Tax Rate Schedules 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 $ 86,375 $164,925 $ 40,525 $ 86,375 $164,925 $209,425 $523,600 $995 plus 12% of the excess over $9.950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 $ 209,425 S $23,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $172,750 $ 81,050 $172,750 $329,850 $418,850 $ 628,300 $1.990 plus 12% of the excess over $19.900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $168.993.50 plus 37% of the excess over $628,300 $ 329,850 $418,850 $ 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 $ 14,200 $ 54,200 S 54,200 $ 86,350 $ 86,350 $164,900 $209,400 S523,600 $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 $164,900 $ 209,400 $ 523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: 10% of taxable income 0 $ 9,950 S $ 9,950 $ 40,525 $ 40,525 $ 86,375 $ 86,375 $995 plus 12% of the excess over $ 9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150 $164,925 $ 209,425 $314,150 $164,925 $ 209,425 $314,150 5. Leonardo, who is married but files separately, earns $68,000 of taxable income. He also has $18,400 in city of Tulsa bonds. His wife, Theresa, earns $53,400 of taxable income. If Leonardo and his wife are married filing jointly in 2021, what is Leonardo and Theresa's effective tax rate for 2021? (Use tax rate schedule.) (Round your final answer to two decimal places.) a) 12.00 percent b) 14.79 percent c) 18.57 percent d) 22.00 percent e) None of the choices are correct 6. Curtis invests $475,000 in a city of Athens bond that pays 6.75 percent interest. Alternatively, Curtis could have invested the $475,000 in a bond recently issued by Initech, Incorporated that pays 8.25 percent interest with similar risk as the city of Athens bond. Assume that Curtis's marginal tax rate is 24 percent. How much implicit tax would Curtis pay on the city of Athens bond? a) $32,062.50 b) $2,405.00 c) $2,305.00 d) $7,125.00 e) None of the choices are correct 7. Marc, a single taxpayer, earns $61,600 in taxable income and $5,160 in interest from an investment in city of Birmingham bonds. Using the U.S. tax rate schedule for 2021, how much federal tax will he owe? (Round your final answer to the nearest whole dollar.) (Use tax rate schedule.) a) $13,600 b) $9,301 c) $7,656 d) $7,154 e) None of the choices are correct 8. Manny, a single taxpayer, earns $66,200 per year in taxable income and an additional $12,120 per year in city of Boston bonds. What is Manny's current marginal tax rate for 2021? (Use tax rate schedule.) a) 11.08 percent b) 12.00 percent c) 12.81 percent d) 15.19 percent e) None of the choices are correct 14. Property taxes may be imposed on both real and personal property. a) True b) False 15. A flat tax is an example of a graduated tax system. a) True b) False 16. Self-employment taxes are charged on self-employment income in addition to any federal income tax. a) True b) False 17. The tax base for the federal income tax is taxable income. a) True b) False 18. A 1 percent charge imposed by a local government on football tickets sold is not considered a tax if all proceeds are earmarked to fund local schools. a) True b) False