Final Answer:
Lazare, filing as head of household with a taxable income of $57,050, has a tax liability of $9,922.50, a marginal tax rate of 22%, and an average tax rate of 17.39%. So the statement is False.
Step-by-step explanation:
To compute Lazare's tax liability, marginal rate, and average rate, we utilize the 2023 federal income tax brackets. The taxable income of $57,050 falls into the 22% tax bracket. The calculation is as follows: Tax liability = Tax rate * (Taxable income - Previous bracket's upper limit) + Previous bracket's tax liability. For Lazare, this results in a tax liability of $9,922.50. The marginal rate is the tax rate applied to the last dollar of income, in this case, 22%. The average tax rate is the total tax liability divided by the taxable income, giving us an average rate of 17.39%.
In detail, Lazare's tax liability is calculated as follows: $9,922.50 = 22% * ($57,050 - $40,525) + $4,453.50 (tax liability from the previous bracket). The marginal rate of 22% signifies that if Lazare's income were to increase, the next dollar earned would be taxed at this rate. The average rate of 17.39% indicates the proportion of Lazare's total income that goes toward federal income tax. These calculations provide a comprehensive understanding of Lazare's tax situation and contribute to effective financial planning. So the statement is False.