Chuck, a single taxpayer, earns $86,000 in taxable income and $20,000 in interest from an investment...

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Chuck, a single taxpayer, earns $86,000 in taxable income and $20,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $53,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $53,000 of additional deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. % % Marginal tax rate 27.71 а. b. Marginal tax rate 24.12 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 9,700 $ 39,475 $ 84,200 The tax is: $ 9,700 $ 39,475 $ 84,200 |10% of taxable income $970 plus 12% of the excess over $9,700 $4,543 plus 22% of the excess over $39,475 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628.50 plus 35% of the excess over $204,100 $510,300 $153,798.50 plus 37% of the excess over $510,300 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 0 $ 19,400 $ 78,950 The tax is: $ 19,400 $ 78,950 10% of taxable income $1,940 plus 12% of the excess over $19,400 $9,086 plus 22% of the excess over $78,950 $168,400 $168,400 $321,450 $28,765 plus 24% of the excess over $168,400 $321,450 $408,200 $65,497 plus 32% of the excess over $321,450 $408,200 $612,350 $93,257 plus 35% of the excess over $408,200 $612,350 $164,709.50 plus 37% of the excess over $612,350 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 13,850 $ 52,850 $1,385 plus 12% of the excess over $13,850 $ 84,200 S6,065 plus 22% of the excess over $52,850 $ 10% of taxable income $ 13,850 $ 52,850 $ 84,200 $160,700 $12,962 plus 24% of the excess over $84,200 $31,322 plus 32% of the excess over $160,700 $510,300 $45,210 plus 35% of the excess over $204,100 $160,700 $204,100 $204,100 $510,300 $152,380 plus 37% of the excess over $510,300 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $ 9,700 $ 9,700 $ 39,475 10% of taxable income $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $ 84,200 $4,543 plus 22% of the excess over $39,475 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $306,175 $46,628.50 plus 35% of the excess over $204,100 $306,175 $82,354.75 plus 37% of the excess over $306,175 Chuck, a single taxpayer, earns $86,000 in taxable income and $20,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $53,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $53,000 of additional deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. % % Marginal tax rate 27.71 а. b. Marginal tax rate 24.12 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 9,700 $ 39,475 $ 84,200 The tax is: $ 9,700 $ 39,475 $ 84,200 |10% of taxable income $970 plus 12% of the excess over $9,700 $4,543 plus 22% of the excess over $39,475 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628.50 plus 35% of the excess over $204,100 $510,300 $153,798.50 plus 37% of the excess over $510,300 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 0 $ 19,400 $ 78,950 The tax is: $ 19,400 $ 78,950 10% of taxable income $1,940 plus 12% of the excess over $19,400 $9,086 plus 22% of the excess over $78,950 $168,400 $168,400 $321,450 $28,765 plus 24% of the excess over $168,400 $321,450 $408,200 $65,497 plus 32% of the excess over $321,450 $408,200 $612,350 $93,257 plus 35% of the excess over $408,200 $612,350 $164,709.50 plus 37% of the excess over $612,350 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 13,850 $ 52,850 $1,385 plus 12% of the excess over $13,850 $ 84,200 S6,065 plus 22% of the excess over $52,850 $ 10% of taxable income $ 13,850 $ 52,850 $ 84,200 $160,700 $12,962 plus 24% of the excess over $84,200 $31,322 plus 32% of the excess over $160,700 $510,300 $45,210 plus 35% of the excess over $204,100 $160,700 $204,100 $204,100 $510,300 $152,380 plus 37% of the excess over $510,300 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $ 9,700 $ 9,700 $ 39,475 10% of taxable income $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $ 84,200 $4,543 plus 22% of the excess over $39,475 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $306,175 $46,628.50 plus 35% of the excess over $204,100 $306,175 $82,354.75 plus 37% of the excess over $306,175

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Answer Forgiven this problem is a single taxpayer so we can tak... View the full answer