Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)Required:If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?What is his marginal rate if, instead, he had $40,000 of additional deductions?Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. 2022 Tax Rate SchedulesIndividualsSchedule X-SingleIf taxable income is over: But not over:$ 0$ 10,275$ 41,775$ 89,075$ 170,050$ 215,950$539,900$ 0$ 20,550$ 83,550$ 178,150$ 340,100$ 431,900$ 647,850$ 10,275$ 41,775$ 89,075$ 170,050$215,950$539,900Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)If taxable income is over: But not over:$ 0$ 14,650$ 55,900$ 89,050$ 170,050$ 215,950$539,900$ 20,550$ 83,550$ 178,150$340,100$431,900$ 647,850Schedule Z-Head of HouseholdIf taxable income is over: But not over:$ 14,650$ 55,900$ 89,050$ 170,050$215,950$539,900The tax is:$ 41,775$ 89,075$ 170,050$215,950$323,92510% of taxable income$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$49,335.50 plus 35% of the excess over $215,950$162,718 plus 37% of the excess over $539,900Schedule Y-2-Married Filing SeparatelyIf taxable income is over: But not over:$ 10,275$ 0$10,275$ 41,775$ 89,075$ 170,050$215,950$ 323,92510% of taxable income$2,055 plus 12% of the excess over $20,550$9,615 plus 22% of the excess over $83,550$30,427 plus 24% of the excess over $178,150$69.295 plus 32% of the excess over $340,100$98,671 plus 35% of the excess over $431,900| $174,253.50 plus 37% of the excess over $647,850The tax is:The tax is:10% of taxable income$1,465 plus 12% of the excess over $14,650$6,415 plus 22% of the excess over $55,900$13,708 plus 24% of the excess over $89,050$33,148 plus 32% of the excess over $170,050$47,836 plus 35% of the excess over $215,950| $161.218.50 plus 37% of the excess over $539,900The tax is:10% of taxable income$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$49,335.50 plus 35% of the excess over $215,950$87,126.75 plus 37% of the excess over $323,925 Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use theU.S. tax rate schedule.)Required:a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?b. What is his marginal rate if, instead, he had $40,000 of additional deductions?Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.Answer is complete but not entirely correct.a. Marginal tax rateb. Marginal tax rate23.02%19.77 %

Income tax refers to the charge that an individual and a corporation is obliged to pay on their…

Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. Answer is complete but not entirely correct. a. Marginal tax rate b. Marginal tax rate 23.02% 19.77 %

Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. Answer is complete but not entirely correct. a. Marginal tax rate b. Marginal tax rate 23.02% 19.77 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Required:

If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
What is his marginal rate if, instead, he had $40,000 of additional deductions?
Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.

2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over:
$ 0
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$ 215,950
$539,900
$ 0
$ 20,550
$ 83,550
$ 178,150
$ 340,100
$ 431,900
$ 647,850
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$539,900
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over:
$ 0
$ 14,650
$ 55,900
$ 89,050
$ 170,050
$ 215,950
$539,900
$ 20,550
$ 83,550
$ 178,150
$340,100
$431,900
$ 647,850
Schedule Z-Head of Household
If taxable income is over: But not over:
$ 14,650
$ 55,900
$ 89,050
$ 170,050
$215,950
$539,900
The tax is:
$ 41,775
$ 89,075
$ 170,050
$215,950
$323,925
10% of taxable income
$1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$49,335.50 plus 35% of the excess over $215,950
$162,718 plus 37% of the excess over $539,900
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over:
$ 10,275
$ 0
$10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$ 323,925
10% of taxable income
$2,055 plus 12% of the excess over $20,550
$9,615 plus 22% of the excess over $83,550
$30,427 plus 24% of the excess over $178,150
$69.295 plus 32% of the excess over $340,100
$98,671 plus 35% of the excess over $431,900
| $174,253.50 plus 37% of the excess over $647,850
The tax is:
The tax is:
10% of taxable income
$1,465 plus 12% of the excess over $14,650
$6,415 plus 22% of the excess over $55,900
$13,708 plus 24% of the excess over $89,050
$33,148 plus 32% of the excess over $170,050
$47,836 plus 35% of the excess over $215,950
| $161.218.50 plus 37% of the excess over $539,900
The tax is:
10% of taxable income
$1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$49,335.50 plus 35% of the excess over $215,950
$87,126.75 plus 37% of the excess over $323,925

Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the
U.S. tax rate schedule.)
Required:
a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?
b. What is his marginal rate if, instead, he had $40,000 of additional deductions?
Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places.
Answer is complete but not entirely correct.
a. Marginal tax rate
b. Marginal tax rate
23.02%
19.77 %

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Meaning of marginal tax

VIEW

Step 2: Computation of marginal tax rate on additional income

VIEW

Step 3: Computation of marginal tax rate on additional deductions

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Sagar
Jake a US citizen, has foreign income of $20,000 and paid a tax of 2000 on this income. His income from all sources (including foreign) is $200,000 and his total US tax on that income is $34,000. what is the amount of his foreign tax credit
Edward has $40,000 of income from a country that imposes a 42-percent income tax and $30,000 of income from a country that imposes a 36 percent income tax. In addition to the foreign income, he has taxable income from US sources of $130,000 and a US tax liability, before credits, of $60,000. The amount of Edward’s foreign tax credit is:
Campbell, a single taxpayer, earns $406,000 in taxable income and $2,480 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule.) Required: a. If Campbell earns an additional $ 16,200 of taxable income, what is her marginal fa rate on this income ? b. What is her marginal rate if, instead, she had $ 16,200 of additional deductions ? Note: For all requirements, do not round intermediate calculations. Round percentage answers to whole percent.
Sergei owns some property that has an assessed value of $242,675. Calculate the tax due if the tax rate is 51.50 mills. (Round your answer to the nearest cent if necessary)
Problem 1-34 (LO 1-3) (Algo) Chuck, a single taxpayer, earns $75,200 in taxable income and $10,200 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.) Required: a. How much federal tax will he owe? b. What is his average tax rate? c. What is his effective tax rate? d. What is his current marginal tax rate? Complete this question by entering your answers in the tabs below. Required A Required B Required C Answer is not complete. Federal tax Required D How much federal tax will he owe? Note: Do not round intermediate calculations. Round "Federal tax" to nearest whole dollar amount.
Consider the following hypothetical income tax brackets for a single taxpayer. Assume for simplicity there are no exemptions or deductions. Income $0-$10,000 $10,000-$40,000 $40,000-$100,000 Over $100,000 Is this tax regressive, progressive, or proportional? The income tax is progressive Suppose Susan's income is $30,000. How much will she pay in income taxes? Susan will pay $ in income taxes. (Enter your response as an integer) Tax Rate 10% 20 35 50
kuk.3
Marc, a single taxpayer, earns $64,600 in taxable income and $5,460 in interest from an investment in city of Birmingham bonds. Using the US tax rate schedule for year 2021, what is his effective tax rate? (Round your final answer to two decimal places.) (Use tax rate schedule) Multiple Choice 20.75 percent 14.22 percent 15.49 percent 11.90 percent None of the choices are correct
Chuck, a single taxpayer, earns $75,400 in taxable income and $10,400 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income? b. What is his marginal rate if, instead, he had $40,000 of additional deductions? Note: For all requirements, do not round intermediate calculations. Round percentage answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate % %
During 2020, Joan Matel is a resident of Ontario, Canada and has calculated her Taxable Income to be $56,700. Assume that Ontario’s rates are 5.05 percent on Taxable Income up to $48,535 and 9.15 percent on the next $48,534. Calculate her 2020 federal and provincial Tax Payable before consideration of credits, and her average rate of tax.
Charlie's regular tax liability is $43,695. His tentative minimum tax is $58,304. He doesn't have any tax credits. What is the amount of Charlie's alternative minimum tax (AMT) and how much will he actually pay in tax for the current year?