Homework SourseProblem 39PS LO3 Jorge and Anitamarried taxpayers earn 15000
Problem 39PS: [LO3] Jorge and Anita,married taxpayers, earn $150,000 in t... [LO3] Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule formarried filing jointly, how much federal tax will they owe? what is their average tax rate? what is their effective tax rate? what is their current marginal tax rate?
Solution
1. Total tax owed = $24878.66
2. Average Tax Rate = (24878.66/150,000)*100 = 16.58%
3. Effective Tax Rate = (24878.66/[150,000+40,000])*100 = 13. 09%
4. Marginal Tax rate = 22 % since they are currently in the 77401-165000 tax slab which has a tax rate of 22%.
| Tax Calculation | ||
| Tax Slab | Rate | Tax Amount |
| 0-19050 | 10% | 1905 (19050*10%) |
| 19051-77400 | 12% | 7001.88 (77400-19051)*12% |
| 77401-165000 | 22% | 15971.78 (150000-77401)*22% |
| Total | 24878.66 |
![Problem 39PS: [LO3] Jorge and Anita,married taxpayers, earn $150,000 in t... [LO3] Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,0](/WebImages/32/problem-39ps-lo3-jorge-and-anitamarried-taxpayers-earn-15000-1092701-1761575627-0.webp "Problem 39PS: [LO3] Jorge and Anita,married taxpayers, earn $150,000 in t... [LO3] Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,0")
