lowconnect mework Help Seve Exit Check n Chuck a single taxp

low/connect. mework Help Seve &Exit; Check n Chuck, a single taxpayer, earns S75,000 in taxable income and soooo n nterest torn an nesmet n Cyd U.S. tax rate schedule) (Do not round intermediate calculations Round your answers to 2 decimeal o. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? boat Ne te . b. What is his marginal rate i,instead, he had $40,000 of additional deductions? Prev 1 of 5 Next > here to search

Solution

Answer a. Using the 2017 Tax Rate Schedule If Chucks Earns Additional Taxable Income = $40,000 Taxable Income = $75,000 + $40,000 Taxable Income = $115,000. Marginal Tax Rate = 28% Marginal Tax Rate for Chuck is 28%, since additional income will be taxable @ 28%. Answer b. If Chucks Earns Additional Deductions = $40,000 Taxable Income = $75,000 - $40,000 Taxable Income = $35,000 Marginal Tax Rate = 15% Marginal Tax Rate for Chuck is 15%, since additional income will be taxable @ 15%.