lan 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 $26,750. Their total in =$307,100. Assume the following tax table is applicable: Iarried Couples Filing Joint Returns Your Taxable ncome is Up to $19,750 You Pay This Amount on the Base of the Bracket 19,750-$80,250 80,250-$171,050 171,050-$326,600 326,600-$414,700 414,700-$622,050 Over $622,050 What is their marginal tax rate? a. 32.0% b. 35.0% c. 12.0% $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 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
lan 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 $26,750. Their total in =$307,100. Assume the following tax table is applicable: Iarried Couples Filing Joint Returns Your Taxable ncome is Up to $19,750 You Pay This Amount on the Base of the Bracket 19,750-$80,250 80,250-$171,050 171,050-$326,600 326,600-$414,700 414,700-$622,050 Over $622,050 What is their marginal tax rate? a. 32.0% b. 35.0% c. 12.0% $0.00 1,975.00 9,235.00 29,211.00 66,543.00 94,735.00 167,307.50 Plus This Percentage on the Excess over the Base 10.0% 12.0 22.0 24.0 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
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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 $26,750. Their total income from wages
is $307,100. 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
Over $622,050
What is their marginal tax rate?
O a. 32.0%
O b. 35.0%
O c. 12.0%
O d. 22.0%
O
You Pay This Amount
on the Base of the
Bracket
e. 24.0%
$0.00
1,975.00
9,235.00
29,211.00
66,543.00
94,735.00
167,307.50
Plus This Percentage on Average Tax Rate at Top
the Excess over the Base
of Bracket
10.0%
12.0
22.0
24.0
32.0
35.0
37.0
10.0%
11.5
17.1
20.4
22.8
26.9
37.0
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