Question

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,750 10% of taxable income $ 19,750 $ 80,250 $1,975 plus 12% of the excess over $19,750 $ 80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171,050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94,735 plus 35% of the excess over $414,700 $622,050 $167,307.50 plus 37% of the excess over $622,050

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Answers is highlighted in yellow: Tax tables are not provided: As per 2020, tax schedule: Solution: MFJ: 25.94% Answer: a) Explanation: Marginal tax rate = Change in Tax / Change in Taxable income Tax on Old income (29211) + (256000-171050) * 24% = Tax on New income (66543) + (349200-326600) *32% = Change in Tax Change in Taxable income Marginal Tax Rate $ 49,599.00 $ 73,775.00 $ 24,176.00 $ 93,200.00 25.94% 23.82% Answer: b) Explanation: Marginal tax rate = Change in Tax / Change in Taxable income Tax on Old income (29211) + (256000-171050) *24% = Tax on New income (9235) + (162800-80250) * 22% = Change in Tax Change in Taxable income Marginal Tax Rate $ 49,599.00 $ 27,396.00 $-22,203.00 $-93,200.00 23.82%