Question

Complete this question by entering your answers In the tabs below. Req a and b| Req c Req d to h d. A single person with taxable income of $80,136 e. A single person with taxable income of $313,471 f. A head of household with taxable income of $97,292. g. A qualifying widow with taxable income of $25,856. h. A married couple filing jointly with taxable income of $11,916. tax rate 410 % 270% 24 00% 350 % 240 0% 1200% 1000 g- 1660 % Req c K Prev 3 of 4 Next > 回 Do al 8 3 4 5 6 8

Answer 1

d.Taxable income of an individual between $38700 and $82500 will be taxed at 22%.In given case, taxable income is $80136. It will come in third tax bracket..In given case, taxable income is $80136. It will come in third tax bracket.The tax rate corresponding to the bracket in which taxable income falls is the marginal tax rate.

This individual's taxable income falls in 3rd tax bracket and tax rate corresponding to second tax bracket is 22%.

So,

This individual's marginal tax rate is 22 %

Tax payable =4453.50+(80136-38700)*22%

=13,569.42

Average tax rate =(Tax payable /Taxable income) *100

=(13,569.42/80136)*100

=16.93%

e. Taxable income of an individual between $200000 and $500000 will be taxed at 35%.

Marginal tax rate =35%

Tax payable =45689.50+(313471-200000)*35%

=85,404.35

Average tax rate =(Tax payable /Taxable income) *100

=(85,404.35/313471)*100

=27.24%

f. Taxable income of a head of household between $82500 and $157500 will be taxed at 24%.

Marginal tax rate =24%

Tax payable =12698+(97292-82500)*24%

=16,248.08

Average tax rate =(Tax payable /Taxable income) *100

=(16,248.08/97292)*100

=16.70%

g. Taxable income of a qualifying widow between $19050and $77400 will be taxed at 12%.

Marginal tax rate =12%

Tax payable =1905+(25856-19050)*12%

=2,721.72

Average tax rate =(Tax payable /Taxable income) *100

=(2,721.72/25856)*100

=10.53%

h. Taxable income of married couple between $0 and $19050 will be taxed at 10%.

Marginal tax rate =10%

Tax payable =11916*10%

=1191.6

Average tax rate =(1191. 6/11916)*100

=10%

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