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5 September, 09:01

Marc, a single taxpayer, earns $99,000 in taxable income and $3,100 in interest from an investment in city of Birmingham bonds. Using the U. S. tax rate schedule for year 2019, what is his current marginal tax rate?

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  1. 5 September, 12:00
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    Current marginal rate tax = (18678.5/102100) * 100 = 18.3%

    Explanation:

    10% bracket (9700 - 0) * 0.1 = $970.0

    12% bracket ($39475-$9700) *.12 = $3573

    22%bracket ($84200 - 39475) *.22 = $9839.5

    24%bracket[ (990000+3100) - 84200] *.24 = $4296

    Total marginal rate tax = 970+3573 + 9839.5 + 4296.00 = $18678.5

    Current marginal rate tax = (18678.5/102100) * 100 = 18.3%
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