The Lees, a family of two adults and two dependent children under age 16, had a gross annual income of $72 comma 000.0072,000.00 for 20202020. Determine their standard deduction and child tax credit amounts, as well as their marginal and average tax rates, assuming their filing status is married filing jointly. Why is their average tax rate lower than their marginal rate?
The Lees, a family of two adults and two dependent children under age 16, had a gross annual income of $72 comma 000.0072,000.00 for 20202020. Determine their standard deduction and child tax credit amounts, as well as their marginal and average tax rates, assuming their filing status is married filing jointly. Why is their average tax rate lower than their marginal rate?
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 42P
Related questions
Question
The Lees, a family of two adults and two dependent children under age 16, had a gross annual income of
$72 comma 000.0072,000.00
for
20202020.
Determine their standard deduction and child tax credit amounts, as well as their marginal and average tax rates, assuming their filing status is married filing jointly. Why is their average tax rate lower than their marginal rate?
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