In 2020, Jack is single two children, ages 10 and 12. Jack works full time and earns

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In 2020, Jack is single two children, ages 10 and 12.  Jack works full time and earns an annual salary of $195,000 as a consultant. Jack files as a head of household and does not itemize his deductions.  In the fall of this year, he was recently offered a position with another firm that would pay him an additional $35,000.  

a. Calculate the marginal tax rate on the additional income, excluding employment taxes, to help Jack evaluate the offer.

b. Calculate the marginal tax rate on the additional income, including employment taxes, to help Jack evaluate the offer.

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Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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