Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimateitemized deductions totaling $27,750. Their total income from wages is $181,200. Assume the following tax table is applicable:Married Couples Filing Joint ReturnsIf Your TaxableIncome IsUp to $19,750$19,750-$80,250$80,250-$171,050O a. 12.0%Ob. 35.0%$171,050-$326,600$326,600-$414,700$414,700-$622,050Over $622,050What is their marginal tax rate?OOc. 24.0%You Pay This Amounton the Base of theBracketd. 32.0%e. 22.0%$0.001,975.009,235.0029,211.0066,543.0094,735.00167,307.50Plus This Percentage onthe Excess over the Base10.0%12.022.024.032.035.037.0Average Tax Rate at Topof Bracket10.0%11.517.120.422.826.937.0

The personal exemption for the tax year 2020 is $0 So, the taxable income for 2020 = $181,200 -…

Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate temized deductions totaling $27,750. Their total income from wages is $181,200. Assume the following tax table is applicable: Married Couples Filing Joint Returns If Your Taxable Income Is Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-$326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 What is their marginal tax rate? O a. 12.0% O b. 35.0% O c. 24.0% O d. 32.0% You Pay This Amount on the Base of the Bracket e. 22.0% $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0

Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate temized deductions totaling $27,750. Their total income from wages is $181,200. Assume the following tax table is applicable: Married Couples Filing Joint Returns If Your Taxable Income Is Up to $19,750 $19,750-$80,250 $80,250-$171,050 $171,050-$326,600 $326,600-$414,700 $414,700-$622,050 Over $622,050 What is their marginal tax rate? O a. 12.0% O b. 35.0% O c. 24.0% O d. 32.0% You Pay This Amount on the Base of the Bracket e. 22.0% $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 32.0 35.0 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 26CE

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