Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly.) Required: a. If Scot and Vidia earn an additional $80,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal tax rate if, instead, they report an additional $80,000 in deductions? Note: For all requirements, round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate % %
Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly.) Required: a. If Scot and Vidia earn an additional $80,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal tax rate if, instead, they report an additional $80,000 in deductions? Note: For all requirements, round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate % %
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:Individuals
Schedule X-Single
If taxable income is over: But not over:
$
0
$ 11,000
$ 44,725
$ 95.375
$ 182,100
$ 231,250
$ 578,125
$ 0
$ 22,000
$ 89,450
$ 190,750
$364,200
$ 462,500
$ 693,750
$ 11,000
$44,725
$ 95,375
$ 182,100
$ 231,250
$578,125
Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse
If taxable income is over: But not over:
The tax is:
$
0
S 15.700
Schedule Z-Head of Household
If taxable income is over: But not over:
$ 59,850
$ 95,350
$ 182,100
$ 231,250
$ 578,100
$ 22,000
$ 89,450
$ 190,750
$364,200
$462,500
$ 693,750
The tax is:
$ 15,700
$ 59,850
$ 95,350
$182,100
$231,250
$578,100
10% of taxable income
$1,100 plus 12% of the excess over $11,000
$5,147 plus 22% of the excess over $44,725
$16,290 plus 24% of the excess over $95,375
$37,104 plus 32% of the excess over $182,100
$52,832 plus 35% of the excess over $231,250
$174,238.25 plus 37% of the excess over $578,125
10% of taxable income
$2,200 plus 12% of the excess over $22,000
$10,294 plus 22% of the excess over $89,450
$32,580 plus 24% of the excess over $190,750
$74,208 plus 32% of the excess over $364,200
$105,664 plus 35% of the excess over $462,500
$186,601.5 plus 37% of the excess over $693,750
The tax is:
10% of taxable income
$1,570 plus 12% of the excess over $15,700
$6,868 plus 22% of the excess over $59,850
$14,678 plus 24% of the excess over $95,350
$35,498 plus 32% of the excess over $182,100
$51,226 plus 35% of the excess over $231,250
$172,623.5 plus 37% of the excess over $578,100
Transcribed Image Text:Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an investment in City of Tampa
bonds. (Use the U.S. tax rate schedule for married filing jointly.)
Required:
a. If Scot and Vidia earn an additional $80,000 of taxable income, what is their marginal tax rate on this income?
b. What is their marginal tax rate if, instead, they report an additional $80,000 in deductions?
Note: For all requirements, round your answers to 2 decimal places.
a. Marginal tax rate
b. Marginal tax rate
%
%
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