Jorge and Anita, married taxpayers, earn $158,500 in taxable income and $48,500 in interest from an...
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Jorge and Anita, married taxpayers, earn $158,500 in taxable income and $48,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $108,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $108,500 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: S 0 $ 9,950 $ 40,525 $ 86,375 $164,925 $ 209,425 $ 523,600 S $ 19,900 $ 81,050 $172,750 $ 329,850 $ 418,850 $ 628,300 $ 9,950 $ 40,525 $ 54,200 $ 86,350 $164,900 $ 209,400 $ 523,600 $ 86,375 $164,925 $ 209,425 $ 523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: 0 Schedule Z-Head of Household If taxable income is over: But not over: S 0 S 14,200 $ 0 $ 9,950 $ 40,525 $ 86,375 $164,925 $ 209,425 $314,150 $ 19,900 $ 81,050 $172,750 $329,850 $ 418,850 $ 628,300 $ 14,200 $ 54,200 $ 86,350 $164,900 $209,400 $ 523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 9,950 $ 40,525 $ 86,375 $164,925 $ 209,425 $314,150 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 The tax is: 10% of taxable income $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the excess over $628,300 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 The tax is: 10% of taxable income i $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150 Jorge and Anita, married taxpayers, earn $158,500 in taxable income and $48,500 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $108,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $108,500 in deductions? (For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.) 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: S 0 $ 9,950 $ 40,525 $ 86,375 $164,925 $ 209,425 $ 523,600 S $ 19,900 $ 81,050 $172,750 $ 329,850 $ 418,850 $ 628,300 $ 9,950 $ 40,525 $ 54,200 $ 86,350 $164,900 $ 209,400 $ 523,600 $ 86,375 $164,925 $ 209,425 $ 523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: 0 Schedule Z-Head of Household If taxable income is over: But not over: S 0 S 14,200 $ 0 $ 9,950 $ 40,525 $ 86,375 $164,925 $ 209,425 $314,150 $ 19,900 $ 81,050 $172,750 $329,850 $ 418,850 $ 628,300 $ 14,200 $ 54,200 $ 86,350 $164,900 $209,400 $ 523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 9,950 $ 40,525 $ 86,375 $164,925 $ 209,425 $314,150 The tax is: 10% of taxable income $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $157,804.25 plus 37% of the excess over $523,600 The tax is: 10% of taxable income $1,990 plus 12% of the excess over $19,900 $9,328 plus 22% of the excess over $81,050 $29,502 plus 24% of the excess over $172,750 $67,206 plus 32% of the excess over $329,850 $95,686 plus 35% of the excess over $418,850 $168,993.50 plus 37% of the excess over $628,300 The tax is: 10% of taxable income $1,420 plus 12% of the excess over $14,200 $6,220 plus 22% of the excess over $54,200 $13,293 plus 24% of the excess over $86,350 $32,145 plus 32% of the excess over $164,900 $46,385 plus 35% of the excess over $209,400 $156,355 plus 37% of the excess over $523,600 The tax is: 10% of taxable income i $995 plus 12% of the excess over $9,950 $4,664 plus 22% of the excess over $40,525 $14,751 plus 24% of the excess over $86,375 $33,603 plus 32% of the excess over $164,925 $47,843 plus 35% of the excess over $209,425 $84,496.75 plus 37% of the excess over $314,150
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To determine the marginal tax rate for Jorge and Anita we need to refer to the US tax rate schedule ... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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