Jorge and Anita, married taxpayers, earn $150,500 in taxable income and $40,500 in Interest from an Investment in City of Hef bonds. (Use the U.S. tax rate schedule for married filling jointly). Required: a. If Jorge and Anita earn an additional $100,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $100,500 in deductions? (For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places.) a. Marginal tax rate b. Marginal tax rate
Jorge and Anita, married taxpayers, earn $150,500 in taxable income and $40,500 in Interest from an Investment in City of Hef bonds. (Use the U.S. tax rate schedule for married filling jointly). Required: a. If Jorge and Anita earn an additional $100,500 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $100,500 in deductions? (For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places.) a. Marginal tax rate b. Marginal tax rate
Chapter12: Tax Credits And Payments
Section: Chapter Questions
Problem 28P
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Transcribed Image Text:Jorge and Anita, married taxpayers, earn $150,500 in taxable income and $40,500 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 $100,500 of taxable income, what is their marginal tax rate on this income?
b. What is their marginal rate if, instead, they report an additional $100,500 in deductions?
(For all requirements, do not round Intermediate calculations. Round your answers to 2 decimal places.)
a. Marginal tax rate
b. Marginal tax rate
%
%
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