Determine the tax liability, marginal tax rate, and average tax rate (rounded to two decimal places) in each of the following cases. Use the tax tables to determine tax liability.Case 1: Married taxpayers, taxable income of $36,162:Case 2: Single taxpayer, taxable income of $66,829: 2020 Federal lIncome Tax Brackets and Rates for Single Filers,Married Couples Filing Jointly, and Heads of HouseholdsFor SingleIndividualsFor Married Individuals FilingJoint ReturnsFor Heads ofHouseholdsRate10%Up to $9,875Up to $19,75Up to $14,100$9,876 to $40,125 $19,751 to $80,250$14,101 to$53,70012%$40,126 to$85, 525$53,701 to$85,50022%$80,251 to $171,050$85, 526 to$163,300$171,051 to $326,600$85, 501 to$163,30024%$163,301 to$207,350$326, 601 to $414,70032%$163,301 to$207,350$207,351 to$518,400$414,701 to $622,050$207,351 to$518, 40035%37%$518,401 or more$622,051 or more$518, 401 or moreSource: Internal Revenue Service

Case 1: Married taxpayers, taxable income of $36,162: Taxable income bracket Taxable Amount Tax…

Determine the tax liability, marginal tax rate, and average tax rate (rounded to two decimal places) in each of the following cases. Use the tax tables to determine tax liability. Case 1: Married taxpayers, taxable income of $36,162: Case 2: Single taxpayer, taxable income of $66,829:

Determine the tax liability, marginal tax rate, and average tax rate (rounded to two decimal places) in each of the following cases. Use the tax tables to determine tax liability. Case 1: Married taxpayers, taxable income of $36,162: Case 2: Single taxpayer, taxable income of $66,829:

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 37P

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Question

Determine the tax liability, marginal tax rate, and average tax rate (rounded to two decimal places) in each of the following cases. Use the tax tables to determine tax liability.

Case 1: Married taxpayers, taxable income of $36,162:

Case 2: Single taxpayer, taxable income of $66,829:

2020 Federal lIncome Tax Brackets and Rates for Single Filers,
Married Couples Filing Jointly, and Heads of Households
For Single
Individuals
For Married Individuals Filing
Joint Returns
For Heads of
Households
Rate
10%
Up to $9,875
Up to $19,75
Up to $14,100
$9,876 to $40,125 $19,751 to $80,250
$14,101 to
$53,700
12%
$40,126 to
$85, 525
$53,701 to
$85,500
22%
$80,251 to $171,050
$85, 526 to
$163,300
$171,051 to $326,600
$85, 501 to
$163,300
24%
$163,301 to
$207,350
$326, 601 to $414,700
32%
$163,301 to
$207,350
$207,351 to
$518,400
$414,701 to $622,050
$207,351 to
$518, 400
35%
37%
$518,401 or more
$622,051 or more
$518, 401 or more
Source: Internal Revenue Service

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