7) (10 points) Max, a single taxpayer, has determined her adjusted gross income is $89,000 for...

 

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7) (10 points) Max, a single taxpayer, has determined her adjusted gross income is $89,000 for 2021. She also received interest from an investment in City of Hawkins bonds of $14,000 (municipal bonds), which is considered non-taxable for federal purposes. She uses the standard deduction for 2021, has no charitable contributions, and is not self-employed. (a) Using the U.S. tax rate schedule for year 2021, how much federal tax will Max owe given the above information (you must find Max's taxable income first)? (b) What is her average tax rate? (c) What is her effective tax rate? (d) What is her current marginal tax rate? (e) If Max earned an additional $34,000 of adjusted gross income, what would her marginal tax rate on this additional income only be? Round your answer to 2 decimal places. 7) (10 points) Max, a single taxpayer, has determined her adjusted gross income is $89,000 for 2021. She also received interest from an investment in City of Hawkins bonds of $14,000 (municipal bonds), which is considered non-taxable for federal purposes. She uses the standard deduction for 2021, has no charitable contributions, and is not self-employed. (a) Using the U.S. tax rate schedule for year 2021, how much federal tax will Max owe given the above information (you must find Max's taxable income first)? (b) What is her average tax rate? (c) What is her effective tax rate? (d) What is her current marginal tax rate? (e) If Max earned an additional $34,000 of adjusted gross income, what would her marginal tax rate on this additional income only be? Round your answer to 2 decimal places.

Answer rating: 100% (QA)

ANSWER a Particulars Amount AGI 89000 Less Standard Deduction 12550 Net Taxable Income 764... View the full answer