Question

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income.

If Leonardo and his wife file married filing jointly in 2019, What is Leonardo and Theresa's effective tax rate for 2019 (rounded)? (Use tax rate schedule.)

Multiple Choice

• 12.00 percent

• 15.63 percent

• 21.04 percent

• 22.00 percent

• None of the choices are correct

Answer 1

Total taxable income	130000	=80000+50000
Leonardo and Theresa fall in tax bracket $78950-$168400
Federal income tax liability	20317	=9086+(130000-78950)*22%
Divide by Total income	145000	=130000+15000
Effective tax rate for 2019	14.01%
Option E None of the choices are correct should be selected