Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $100,000 in deductions? (For all requirements, round your answers to 2 decimal places.) a. Marginal tax rate b. Marginal tax rate % %
Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $100,000 in deductions? (For all requirements, round your answers to 2 decimal places.) a. Marginal tax rate b. Marginal tax rate % %
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 29P: Arthur and Cora are married and have 2 dependent children. They have a gross income of 95,000. Their...
Related questions
Question
Transcribed Image Text:G
2021 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over:
S
0
$ 9,950
$ 40,525
$ 86,375
$164,925
$ 209,425
S523,600
Esc
$ 329,850
$ 418,850
$ 628,300
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over:
SO
$ 19,900
S 81,050
$ 172,750
53°F
Sunny
https://ezt.prod.r
Schedule Z-Head of Household
If taxable income is over: But not over:
S
0
S 14,200
7
!
Q
A
$ 9,950
10% of taxable income
$ 40,525
$ 86,375
$995 plus 12% of the excess over $9,950
$4,664 plus 22% of the excess over $40,525
$164,925 $14,751 plus 24% of the excess over $86,375
$209,425 $33,603 plus 32% of the excess over $164,925
$523,600 $47,843 plus 35% of the excess over $209,425
$157,804.25 plus 37% of the excess over $523,600
$ 19,900
$ 81,050
$ 172,750
$329,850
$418,850
$628,300
2
@
W
10% of taxable income
$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
$ 14,200 10% of taxable income
$ 54,200
3
s ll
The tax is:
$1,420 plus 12% of the excess over $14,200
Q Search
E
F4
BO
The tax is:
$
4
The tax is:
FS
R
%
5
T
6
Y
&
VX
7
FO
Transcribed Image Text:es
Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin
bonds. (Use the U.S. tax rate schedule for married filing jointly).
Required:
a. If Jorge and Anita earn an additional $100,000 of taxable income, what is their marginal tax rate on this income?
b. What is their marginal rate if, instead, they report an additional $100,000 in deductions?
(For all requirements, round your answers to 2 decimal places.)
a. Marginal tax rate
b. Marginal tax rate
%
%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you