Question

Scot and Vidia, married taxpayers, earn $92,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. If Scot and Vidia earn an additional $60,500 of taxable income, what is their marginal tax rate on this income?

Answer 1

a. Total Income=$152,500

Marginal Tax rate = 17.3%

Step-by-step explanation:

Total Income=Taxable Income+Additional Income = $92,000+$60,500=$152,500

Marginal Tax rate = 17.3%