In 2020, Jack is single two children, ages 10 and 12. Jack works full time and earns
Question:
In 2020, Jack is single two children, ages 10 and 12. Jack works full time and earns an annual salary of $195,000 as a consultant. Jack files as a head of household and does not itemize his deductions. In the fall of this year, he was recently offered a position with another firm that would pay him an additional $35,000.
a. Calculate the marginal tax rate on the additional income, excluding employment taxes, to help Jack evaluate the offer.
b. Calculate the marginal tax rate on the additional income, including employment taxes, to help Jack evaluate the offer.
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Step by Step Answer:
a If Jack refuses the position his 2020 AGI is 195000 his taxable income is 176350 195000 18650 and his gross tax is 36006 His marginal tax rate is 32 ...View the full answer
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Related Book For 
Taxation Of Individuals And Business Entities 2021
ISBN: 9781260247138
12th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
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