Justin Timberlake, a single taxpayer, earns $$78,200$ in taxable income and $$13,600$ in interest from an investment in City of Los Angeles bonds. $($Use the U$.$S$.$ tax rate schedule.$)$

Required:

If Justin earns an additional $$40,000$ of taxable income, what is his marginal tax rate on this income?

What is his marginal rate if$,$ instead, he had $$40,000$ of additional deductions?

Answer rating: 100% (QA)

To determine Justin Timberlakes marginal tax rate on an additional 40000 of taxable income and an additional 40000 of deductions we need to refer to t... View the full answer