Question

Compute the 2017 tax liability and the marginal and average tax rates for the following taxpayers.

Click here to access the 2017 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to three decimal places before converting to a percentage (i.e. .67073 would be rounded to .671 and entered as 67.1%).

a. Chandler, who files as a single taxpayer, has taxable income of $118,600.

Tax liability:	$
Marginal rate:		%
Average rate:		%

b. Lazare, who files as a head of household, has taxable income of $119,400.

Tax liability:	$
Marginal rate:		%
Average rate:

Answer 1

Solution:-

a.

Chandler tax laibility
Tax Liability:	$ 26,189.75
Marginal rate:	28	%
Average rate:	22.1	%

Tax laibility:- 18713.75 + {(118,600 - 91,900) * 28%} = 26,189.75

Averate rate : 26189.75 / 118,600 = 22.1%

b.

Lazare tax laibility
Tax Liability:	$ 24,102.5
Marginal rate:	25	%
Average rate:	20.2	%

Tax laibility:- 6,952.50 + {(119,400 - 50,800) * 25%} = 24,102.5

Averate rate : 24,102.5 / 119,400 = 20.2%

Please Rate or comment if you have any doubt regarding this solution.