FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin
bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate?
What is their effective tax rate? What is their current marginal tax rate?
Note: Round your percentage answers to 2 decimal places.
Federal tax
Average tax rate
Effective tax rate
Marginal tax rate
%
%
%
Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse
If taxable income is over: But not over:
The tax is:
$ 22,000
$ 89,450
$ 190,750
$364,200
$462,500
$ 693,750
$ 0
$ 22,000
$ 89,450
$ 190,750
$364,200
$ 462,500
$ 693,750
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
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Transcribed Image Text:Jorge and Anita, married taxpayers, earn $150,000 in taxable income and $40,000 in interest from an investment in City of Heflin bonds. Using the U.S. tax rate schedule for married filing jointly, how much federal tax will they owe? What is their average tax rate? What is their effective tax rate? What is their current marginal tax rate? Note: Round your percentage answers to 2 decimal places. Federal tax Average tax rate Effective tax rate Marginal tax rate % % % Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: The tax is: $ 22,000 $ 89,450 $ 190,750 $364,200 $462,500 $ 693,750 $ 0 $ 22,000 $ 89,450 $ 190,750 $364,200 $ 462,500 $ 693,750 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
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