Final answer:
Kenji's 2022 taxable income of $205,000 places him in the 35% marginal tax rate bracket, as per the IRS tax brackets for a single taxpayer.
Step-by-step explanation:
To determine Kenji's marginal tax rate for his 2022 taxable income of $205,000, we must look at the tax brackets for that year. The marginal tax rate refers to the rate at which his highest dollar of income is taxed. According to IRS tax brackets for 2022, assuming Kenji is filing as a single taxpayer, the tax rates increase progressively as follows:
- 10% on income from $0 to $9,525
- 12% on income from $9,525 to $38,700
- 22% on income from $38,700 to $82,500
- 24% on income from $82,500 to $157,500
- 32% on income from $157,500 to $200,000
- 35% on income from $200,000 to $500,000
- 37% on income over $500,000
Kenji's income of $205,000 would place his marginal tax rate in the 35% bracket, as that is the rate that applies to income levels between $200,000 and $500,000. So, the correct answer is d) 37.0%.