Chuck, a single taxpayer, earns $$75,400$ in taxable income and $$10,400$ in interest from an investment in City of Heflin bonds. $($Use the U$.$S$.$ tax rate schedule.$)$

Required:

If Chuck earns an additional $$40,000$ of taxable income, what is his marginal tax rate on this income?

What is his marginal rate if$,$ instead, he had $$40,000$ of additional deductions?

Answer rating: 100% (QA)

To determine Chucks marginal tax rate on an additional 40000 of taxable income or deductions we need to calculate the tax liability before and after the additional income or deductions Then we can com... View the full answer