# pg13 - married filing jointly, how much federal tax will...

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Marginal Tax Rate = = = 30.04% If Jorge and Anita instead had \$100,000 of additional tax deductions, their marginal tax rate on the deductions would be 23.58 percent. Marginal Tax Rate = = = 23.58% (41) [LO3] In reviewing the tax rate schedule for married filing jointly, Jorge and Anita note that the tax on \$150,000 is \$26,687.50 plus 28 percent of the taxable income over \$137,300. What does the \$26,687.50 represent? The \$26,687.50 represents the income tax on \$137,300 – i.e., \$9,362.50 + 25%(\$137,300 – 68,000). (42) [LO3] Scot and Vidia, married taxpayers, earn \$240,000 in taxable income and \$5,000 in interest from an investment in City of Tampa bonds. Using the U.S. tax rate schedule for
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Unformatted text preview: 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? Scot and Vidia will owe \$56,981 in federal income tax this year computed as follows: \$56,981 = \$46,833.50 + 33%(\$240,000 - \$209,250). Scot and Vidia’s average tax rate is 23.74 percent. Average Tax Rate = = = 23.74% Scot and Vidia’s effective tax rate is 23.26 percent. Effective tax rate = = = 23.26% Scot and Vidia are currently in the 33 percent tax rate bracket. Their marginal tax rate on increases in income up to \$133,650 and deductions up to \$30,750 is 33 percent....
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## This note was uploaded on 04/04/2012 for the course ACCT 26373 taught by Professor Hall during the Spring '10 term at Texas State.

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