Question

Hello,
I solved the following problem and got it wrong. I cannot seem to figure out what I did wrong. Can anyone help me? The answers I put are 27.72 and 24.12 (I did a typo on the first one because I actually got 27.71) is that the correct answer? For the second portion I keep getting the same answer I put and got wrong which was 24.12. Any help would be greatly appreciated!

Chuck, a single taxpayer, earns $86,000 in taxable income and $20,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. If Chuck earns an additional $53,000 of taxable income, what is his marginal tax rate on this income?

b. What is his marginal rate if, instead, he had $53,000 of additional deductions?

      

2017 Tax Rate Schedule Schedule X-Single Schedule Z-Head of Household If taxable Income is over: But not over: If taxable income is over: But not over: The tax is: The tax is: $ 0 $ 9,325 10% of taxable income $ 9,325 $ 37,950 $932.50 plus 15% of the excess aver $9,325 $ 37,950 $ 91,900 $5.226.25 plus 25% of the excess aver $37,950 $ 91,900 $191,650 $18.713.75 plus 28% of the excess aver $91,900 $191,650 $416,700 $46.643.75 plus 33% of the excess aver $191,650 $416,700 $418,400 $120,910.25 plus 35% of the excess aver $416,700 $418,400 $121,505 25 plus 39.6% of the excess cver $418,400 $ 0 $ 13,350 10% of taxable income $ 13,350 $ 50,800 $1,335.00 plus 15% of the excess over $13,350 $ 50,800 $131,200 $6,952.50 plus 25% of the excess over $50.800 $131,200 $212,500 $27,052.50 plus 28% of the excess over $131,200 $212,500 $416,700 $49,816.50 plus 33% of the excess over $212,500 $416.700 $444,550 $117,202.50 plus 35% of the excess over $416,700 $444,550 $126,950.00 plus 39.6% of the excess over $444,550 Schedule Y-2-Married Filing Separately Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: If taxable Income is over: But not over: The tax is: But not over: The tax is: $ $ 0 $ 18,650 10% of taxable income $ 18,650 $ 75,900 $1.865.00 plus 15% of the excess over $18,650 $ 75,900 $153,100 $10,452.50 plus 25% of the excess over $75,900 $153,100 $233,350 $29.752.50 plus 28% of the excess over $153,100 $233,350 $416,700 $52.222.50 plus 33% of the excess cver $233,350 $416,700 $470,700 $112,728.00 plus 35% of the excess aver $416,700 $470,700 $131,628.00 plus 39.6% of the excess aver $470,700 $ $ 9,325 10% of taxable income $ 9,325 $ 37,950 $932.50 plus 15% of the excess over $9,325 $ 37,950 $ 76,550 $5,226.25 plus 25% of the excess over $37,950 $ 76,550 $116,675 $14,876.25 plus 28% of the excess over $76,550 $116.675 $208,350 $26,111.25 plus 33% of the excess over $116,675 $208,350 $235,350 $56,364.00 plus 35% of the excess over $208,350 $235,350 $65,814.00 plus 39.6% of the excess over $235,350

       

Answer 1

Tax on $86000	$ 17,238.75	5226.25+(86000-37950)*25%
a
Taxable income	$    139,000	86000+53000
Tax on $139000	$ 31,901.75	18713.75+(139000-91900)*28%
Marginal tax	27.67%	(31901.75-17238.75)/53000
b
Taxable income	$      33,000	86000-53000
Tax on $33000	$   4,483.75	932.5+(33000-9325)*15%
Marginal tax	24.07%	(17238.75-4484.75)/53000