Question

Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was $392,000. Round your answers to two decimal places. What is their federal tax liability? $ What is their marginal tax rate? % What is their average tax rate?

Answer 1

	Tax	Calculation
On first $50,000	$                7,500	=50000*15%
On next $25,000	$                6,250	=25000*25%
On next $25,000	$                8,500	=25000*34%
On next $235,000	$              91,650	=235000*39%
On next $57,000	$              19,380	=57000*34%
Total tax payable	$    133,280
Average tax rate	34.00%
	=133280/392000
Marginal tax rate	34.00%