Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $26,000. Their total income from wages is $278,600. 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 You Pay This Amount on Plus This Percentage on the Base of the Bracket the Excess over the Base 10.0% 12.0 22.0 24.0 Over $622,050 What is their average tax rate? $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 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 itemized deductions totaling $26,000. Their total income from wages is $278,600. 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 You Pay This Amount on Plus This Percentage on the Base of the Bracket the Excess over the Base 10.0% 12.0 22.0 24.0 Over $622,050 What is their average tax rate? $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 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
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 26CE
Related questions
Question
Transcribed Image Text:Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $26,000. Their total income from wages is
$278,600. 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
You Pay This Amount on Plus This Percentage on
the Base of the Bracket the Excess over the Base
10.0%
12.0
22.0
24.0
Over $622,050
What is their average tax rate?
$0.00
1,975.00
9,235.00
29,211.00
66,543.00
94,735.00
167,307.50
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
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