Homework Answers
Answer a and b:
Working:
Answer (a):
Filing status: Married filing jointly
Interest on investment in City of Tampa bonds is tax free.
Taxable income = $240,000
Income tax on taxable income of $240,000 = 28765 + (240000 - 168400) * 24% = $45,949
If Scot and Vidia earn additional taxable income of $80,000:
Total taxable income = 240000 + 80000 = $320,000
Income tax on taxable income of $320,000 = 28765 + (320000 - 168400) * 24% = $65149
Marginal tax rate on this additional income = (65149 - 45949) / 80000 = 24.00%
Answer (b):
If Scot and Vidia have additional deduction of $80,000:
Total taxable income = 240000 - 80000 = $160,000
Marginal tax rate on taxable income of $160,000 = 22.00%
As such:
Marginal tax rate if they report deduction of $80000 = 22.00%
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Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an...
Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an...
Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22%...
Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an...
Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22%...
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Jorge and Anita, married taxpayers, earn $41,500 in taxable
income and $27,500 in interest from an investment in City of Heflin
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how much federal tax will they owe? What is their average tax rate?
What is their effective tax rate? What is their current marginal
tax rate? (Do not round intermediate calculations. Round
your answers to 2 decimal places.)
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Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? (Round your answers to 2 decimal places.) Federal tax Efective taxe Marginal tax rate If taxable income is over: But not over:...
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Jorge and Anita, married taxpayers, earn $95,000 in taxable income and $42,500 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Federal tak Average tax rate Effective tax rate Marginal tax...
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In 2019. Lisa and Fred, a married couple, had taxable income of $309.700. If they were to file separate tax returns, Lisa would have reported taxable income of $128.200 and Fred would have reported taxable income of $181,500. Use Tax Rate Schedule for reference What is the couple's marriage penalty or benefit? (Do not round intermediate calculations.) Marriage benefit 39,415 5970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475...
Jorge and Anita, married taxpayers, earn $41,500 in taxable
income and $27,500 in interest from an investment in City of Heflin
bonds. Using the U.S. tax rate schedule for married filing jointly,
how much federal tax will they owe? What is their average tax rate?
What is their effective tax rate? What is their current marginal
tax rate? (Do not round intermediate calculations. Round
your answers to 2 decimal places.)
1. Federal Tax
2. Average tax rate
3. Effective tax...
Jorge and Anita, married taxpayers, earn $149,000 in taxable income and $63,000 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 $111,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $111,500 in deductions? (For all requirements, do not round intermediate calculations. Round your answers...
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Jorge and Anita, married taxpayers, earn $95,000 in taxable income and $42,500 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Federal tak Average tax rate Effective tax rate Marginal tax...
Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Marginal tax rate Marginal...
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