Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was $375,000. What is their federal tax liability? What is their marginal tax rate? What is their average tax rate?

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 6DQ
icon
Related questions
Question
PERSONAL TAXES Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax tables presented in the chapter. Assume that their taxable income this year was $375,000. What is their federal tax liability? What is their marginal tax rate? What is their average tax rate?
Table 3.5.
2020 Individual Tax
Rates
Single Individuals
You Pay This
Plus This Percentage
Average Tax
Rate at Top
of Bracket
If Your Taxable
Amount on the
on the Excess over
Income Is
Base of the Bracket
the Base (Marginal Rate)
Up to $9,875
$ 0.00
10.0%
10.0%
$9,875-$40,125
987.50
12.0
11.5
$40,125-$85,525
4,617.50
22.0
17.1
$85,525-$163,300
14,605.50
24.0
20.4
$163,300-$207,350
33,271.50
32.0
22.8
$207,350-$518,400
47,367.50
35.0
30.1
Over $518,400
156,235.00
37.0
37.0
Married Couples Filing Jolnt Returns
You Pay This
Plus This Percentage
on the Excess over the
Average Tax
If Your Taxable
Amount on the
Rate at
Income Is
Base of the Bracket
Base (Marginal Rate)
Top of Bracket
Up to $19,750
$ 0.00
10.0%
10.0%
$19,750-$80,250
1,975.00
120
11.5
$80,250-$171,050
9,235.00
220
17.1
$171,050-$326,600
29,211.00
24.0
20.4
$326,600-$414,700
66,543.00
32.0
22.8
$414,700-$622,050
94,735.00
35.0
26.9
Over $622,050
167,307.50
37.0
37.0
Transcribed Image Text:Table 3.5. 2020 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Average Tax Rate at Top of Bracket If Your Taxable Amount on the on the Excess over Income Is Base of the Bracket the Base (Marginal Rate) Up to $9,875 $ 0.00 10.0% 10.0% $9,875-$40,125 987.50 12.0 11.5 $40,125-$85,525 4,617.50 22.0 17.1 $85,525-$163,300 14,605.50 24.0 20.4 $163,300-$207,350 33,271.50 32.0 22.8 $207,350-$518,400 47,367.50 35.0 30.1 Over $518,400 156,235.00 37.0 37.0 Married Couples Filing Jolnt Returns You Pay This Plus This Percentage on the Excess over the Average Tax If Your Taxable Amount on the Rate at Income Is Base of the Bracket Base (Marginal Rate) Top of Bracket Up to $19,750 $ 0.00 10.0% 10.0% $19,750-$80,250 1,975.00 120 11.5 $80,250-$171,050 9,235.00 220 17.1 $171,050-$326,600 29,211.00 24.0 20.4 $326,600-$414,700 66,543.00 32.0 22.8 $414,700-$622,050 94,735.00 35.0 26.9 Over $622,050 167,307.50 37.0 37.0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
Individual Income Taxes
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning