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Jim who is married but files separately, earns $80,000 of taxable income. He also has $15,000...

Jim who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in interest from a city of Asheville bond.. His wife, May, earns $50,000 of taxable income. If Jim earned an additional $30,000 of taxable income this year, what would be the marginal tax rate (rounded) on the extra income for 2019? (Use tax rate schedule.)

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Answer #1

Ans: Taxable income as Joint holder= 80,000

Tax on $130,000 married filing separately:4,543+22% of (80,000-39,475)

=> 4,543+ 22% of 40,525

=> 4,543+ 8,915.50

=> 13,458.50

Additional Income earned 30,000

Total Income- 30,000+80,000=110,000

Tax liability= 14,382.50+ 24% of (110,000-84,200)

=> 14,382.50+ 6,192

=> 20,574.50

Marginal tax on additional Income= 20,574.50-13,458.50

=> 7,116

Marginal Tax on additional income= 7,116/30,000*100

=> 23.72%

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