Question

Heather, a single taxpayer who files as a head of household, earns $62,100 in taxable income and $15,500 in interest from an investment in city of Oxford Bonds. Using the U.S. tax rate schedule for year 2019, how much federal tax will she owe? What is her average tax rate? What is her effective tax rate? What is her current marginal tax rate? If Heather has an additional $41,000 of tax deductions, what is her marginal tax rate on these deductions? (Round the tax rates to two decimal places, e.g., .12345 as 12.35%) (Use tax rate schedule)

Answer 1

Ans. Federal Ta owed 6065 + 22-1. of (62100 - 52850) 6065 + 2035 => 18100 Average Tax Rate Total Tax Taxable Income 1 8100 62100 27 13.04. Effective Tax Rate Total Tax Total Income 10.447. 8100 62100 tis 500 Current Marginal Tax Rate 22.). Calculation marginal Tax Rate with additional De- Puctions of 41000 - ( Tax on 2110o 138.5 + 12.1. of (21100 - 13850) Marginal Tax Rate 1385 t 870 2255 Change in Tax Change in Taxable Income 2255-8100 14.261 21100 - 62100 M