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 $28,000. Their total income frwages is $271,800. Assume the following tax table is applicable:Married Couples Filing Joint ReturnsYou Pay This Amounton the Base of theBracketIf Your TaxableIncome IsUp to $19,750$19,750-$80,250$80,250-$171,050$171,050-$326,600$326,600-$414,700$414,700-$622,050Over $622,050What is their marginal tax rate?O a. 22.0%O b. 12.0%O c. 35.0%Od. 24.0%O e. 32.0%$0.001,975.009,235.0029,211.0066,543.0094,735.00167,307.50Plus This Percentage on Average Tax Rate at Topthe Excess over the Baseof Bracket10.0%10.0%12.011.522.017.120.422.826.937.024.032.035.037.0

SOLUTIONCALCULATION-PARTICULARSAMOUNTINCOME 271800LESS - ITEMIZED DEDUCTIONS -28000TAXABLE Income…

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 $28,000. Their total income fr wages is $271,800. Assume the following tax table is applicable: Married Couples Filing Joint Returns You Pay This Amount on the Base of the Bracket f Your Taxable ncome 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. 22.0% O b. 12.0% O c. 35.0% O d. 24.0% O e. 32.0% $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

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 $28,000. Their total income fr wages is $271,800. Assume the following tax table is applicable: Married Couples Filing Joint Returns You Pay This Amount on the Base of the Bracket f Your Taxable ncome 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. 22.0% O b. 12.0% O c. 35.0% O d. 24.0% O e. 32.0% $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

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 26CE

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