5 Capital Gains RatesIndividuals taxed at:RateSingle Taxable incomeMFJ Taxable Income0%Up to $40,000Up to $80,00015%> $40,000 but < $441,450>$80,000 but < $496,60020%Over $441,450Over $496,600B, a single taxpayer, is 68 years old with good vision and has income and deductions for 2020 thatare summarized as follows:Municipal Bond Interest $5,500Bank Interest $3,500Wages $98,000Received Gift $3,000Received Qualified Dividends $5,0004Received Alimony (from a divorce settlement prior to 2018) $3,000Sold Stock A for $6,000 on 12/11/20. Purchased stock A for $2,500 on 3/1/20.Sold Stock B for $6,000 on 11/10/20. Purchased stock B for $9,000 on 10/1/18.Non-refundable income tax credit $300Federal income tax withheld $12,100Itemized Deductions $4,900Deductions for A.G.I. $3,000$1) What is B's tax due or (refund) for 2020 tax year?2) What is B's Marginal tax rate?%3) What is B's Effective tax rate?In the text box provided, show the tax formula and calculate the appropriate rates. Use the following table for this question:Single:The Tax Is:If Taxable Income Is:Not over $9,87510% of the taxable incomeOver $9,875 but not over $40,125Over $40,125 but not over $85,525Over $85.525 but not over $163,300Over $163,300 but not over $207,350Over $207,350 but not over $518,400Over $518,400$988 plus 12% of the excess over $9,875$4,618 plus 22% of the excess over $40,125$14,606 plus 24% of the excess over $85,525$33,272 plus 32% of the excess over $163,300$47,368 plus 35% of the excess over $207,350$156,235 plus 37% of the excess over $518,400Standard DeductionSingle - $12,400MFJ-$24,800Additions for age and the blindSingle - $1,650MFJ- $1,300Capital Gains RatesIndividuals taxed at:RateSingle Taxable incomeMFJ Taxable IncomeUp to $80,0000%Up to $40,00015%> $40,000 but < $441,450>$80,000 but < $496,60020%Over $441,450Over $496.600B, a single taxpayer, is 68 years old with good vision and has income and deductions for 2020 thatare summarized as follows:Municipal Dr

The marginal tax rate is the slab -rate at which the individual's income falls and it is taxed.…

Capital Gains Rates Individuals taxed at: Rate Single Taxable income MFJ Taxable Income Up to $40,000 0% Up to $80,000 15% > $40,000 but < $441,450 $80,000 but <$496,600 20% Over $441,450 Over $496,600 B, a single taxpayer, is 68 years old with good vision and has income and deductions for 2020 that are summarized as follows: Municipal Bond Interest $5,500 Bank Interest $3,500 Wages $98,000 Received Gift $3,000 Received Qualified Dividends $5,000 Received Alimony (from a divorce settlement prior to 2018) $3,000 Sold Stock A for $6,000 on 12/11/20. Purchased stock A for $2,500 on 3/1/20 Sold Stock B for $6,000 on 11/10/20. Purchased stock B for $9,000 on 10/1/18. Non-refundable income tax credit $300 Federal income tax withheld $12,100 Itemized Deductions $4,900 Deductions for A.G.I. $3,000 1) What is B's tax due or (refund) for 2020 tax year? 2) What is B's Marginal tax rate? 3) What is B's Effective tax rate? ate rates