Jared and Rachel want you to determine their tax assessment.

a. How much federal income tax do they owe?

b. How much NC state income tax do they owe?

c. What is the effective tax rate for the couple? I.e., what percentage of their total income is paid in taxes?

d. Rachel believes that Jared calculated the federal taxes incorrectly. She calculated the taxes by multiplying their taxable income by 12%. Explain to Rachel why this is wrong. (Hint: What's the difference between a flat 12% rate and the current federal tax system?).

Answer rating: 100% (QA)

To determine Jared and Rachels tax assessment we need information on their income deductions and fil... View the full answer