1. Jennifer and Paul, who file a joint return, have taxable income of $93,425 and the following tax liability:

$18,450 × 10% = $ 1,845.00

($74,900 − $18,450) × 15% = 8,467.50

($93,425 − $74,900) × 25% = 4,631.25

Total tax liability $14,943.75

Their marginal tax rate is:

a. 10%.

b. 15%.

c. 16%

d. 25%.

2. Jennifer and Paul, who file a joint return, have taxable income of $93,425 and the following tax liability:

$18,450 × 10% =$ 1,845.00

($74,900 − $18,450) × 15% = 8,467.50

($93,425 − $74,900) × 25% = 4,631.25

Total tax liability $14,943.75

Their average tax rate is:

a. 10%.

b. 15%.

c. 16%.

d. 25%.

3. Benito is age 29 and single. During all of 2015, he did not have qualifying health coverage nor was he eligible for an exemption. His household income was $37,650. What is the amount of shared responsibility payment he must report on his 2015 income tax return?

a. $0

b. $325

c. $547

d. $753