Use the following table for this problem.

Tax Rate Schedule 2021
Unmarried Individual:
If Taxable Income Is:	The Tax Is:
Not over $9,950	10% of the taxable income
Over $9,950 but not over $40,525	$995 plus 12% of the excess over $9,950
Over $40,525 but not over $86,375	$4,664 plus 22% of the excess over $40,525
Over $86,375 but not over $164,925	$14,751 plus 24% of the excess over $86,375
Over $164,925 but not over $209,425	$33,603 plus 32% of the excess over $164,925
Over $209,425 but not over $523,600	$47,843 plus 35% of the excess over $209,425
Over $523,600	$157,804 plus 37% of the excess over $523,600
Married Filing Jointly or Qualifying Widow(er):
If Taxable Income Is:	The Tax Is:
Not over $19,900	10% of taxable income
Over $19,900 but not over $81,050	$1,990, plus 12% of the excess over $19,900
Over $81,050 but not over $172,750	$9,328, plus 22% of the excess over $81,050
Over $172,750 but not over $329,850	$29,502, plus 24% of the excess over $172,750
Over $329,850 but not over $418,850	$67,206, plus 32% of the excess over $329,850
Over $418,850 but not over $628,300	$95,686, plus 35% of the excess over $418,850
Over $628,300	$168,993, plus 37% of the excess over $628,300
Standard Deduction
Single - $12,550
MFJ - $25,100
Additions for age and the blind
Single - $1,750
MFJ - $1,400
Exemption Amount - $0
Individuals taxed at:
Rate Single Taxable income MFJ Taxable Income
0% Up to $40,400 Up to $80,800
15% > $40,400 but < $445,850 > $80,001 but < $501,600
20% Over $445,850 Over $501,600

Tim and Jan, file MFJ and are under 65 years old with good vision. They have income and deductions for 2021 that are summarized as follows:

Municipal Bond Interest $9,000

Federal Bond Interest $8,000

Tim Wages $98,000

Jan Wages $145,000

Received Qualified Dividends $5,000

Sold Stock A for $16,000 on 12/11/21. Purchased stock A for $12,750 on 3/1/19.

Sold Stock B for $7,500 on 11/10/21. Purchased stock B for $10,000 on 10/1/18.

Non-refundable income tax credit $1,500

Federal income tax withheld $38,000

Itemized Deductions $8,000

Other Deductions for A.G.I. $3,000

Required

1) What is B’s tax due or (refund) for 2021 tax year?

2) What is B’s Marginal tax rate?

3) What is B’s Effective tax rate?

In the text box provided, show the tax formula and calculate the appropriate rates.