Jorge and Anita, married taxpayers, earn $161,000 in taxable income and $51,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $111,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $111,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is But not over: $20,550 10% of taxable income $ 83,550 $2,055 plus 12% of the excess over $20,550 $178,150 $9,615 plus 22% of the excess over $83,550 $340,100 $30,427 plus 24% of the excess over $178,150 $431,900 $69,295 plus 32% of the excess over $340,100 $647,850 $98,671 plus 35% of the excess over $431,900 $174,253.50 plus 37% of the excess over $647,850 over: $ 0 $ 20,550 $ 83,550 $178,150 $340,100 $431,900 $647,850 The tax is:
Jorge and Anita, married taxpayers, earn $161,000 in taxable income and $51,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly). Required: a. If Jorge and Anita earn an additional $111,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $111,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is But not over: $20,550 10% of taxable income $ 83,550 $2,055 plus 12% of the excess over $20,550 $178,150 $9,615 plus 22% of the excess over $83,550 $340,100 $30,427 plus 24% of the excess over $178,150 $431,900 $69,295 plus 32% of the excess over $340,100 $647,850 $98,671 plus 35% of the excess over $431,900 $174,253.50 plus 37% of the excess over $647,850 over: $ 0 $ 20,550 $ 83,550 $178,150 $340,100 $431,900 $647,850 The tax is:
Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions
Section: Chapter Questions
Problem 6CPA: Bill and Anne Chambers are married and file a joint return. They have no children. Their college...
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Transcribed Image Text:Jorge and Anita, married taxpayers, earn $161,000 in taxable income and $51,000 in interest from an investment in City of Heflin
bonds. (Use the U.S. tax rate schedule for married filing jointly).
Required:
a. If Jorge and Anita earn an additional $111,000 of taxable income, what is their marginal tax rate on this income?
b. What is their marginal rate if, instead, they report an additional $111,000 in deductions?
Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
a. Marginal tax rate
b. Marginal tax rate
%
%
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is
But not over:
over:
$ 0
$ 20.550
$ 83.550
$ 178,150
$340,100
$431,900
$647,850
The tax is:
10% of taxable income
$2,055 plus 12% of the excess over $20,550
$ 20,550
$ 83,550
$ 178,150 $9,615 plus 22% of the excess over $83,550
$340,100 $30,427 plus 24% of the excess over $178.150
$431,900 $69,295 plus 32% of the excess over $340,100
$98,671 plus 35% of the excess over $431,900
$174,253.50 plus 37% of the excess over
$647,850
$ 647,850
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