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Marc, a single taxpayer, earns $99,000 in taxable income and $3,100 in interest from an investment in city of Birmingham bonds. Using the U.S. tax rate schedule for year 2021, what is his current marginal tax rate? (Use tax rate schedule.)

User Apryl
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Answer:

Current marginal rate tax = (18678.5/102100 ) * 100 = 18.3%

Step-by-step explanation:

10% bracket( 9700 - 0) * 0.1 = $970.0

12% bracket($39475-$9700) *.12 = $3573

22%bracket($84200 - 39475) * .22 = $9839.5

24%bracket[(990000+3100) - 84200] * .24 = $4296

Total marginal rate tax = 970+3573+ 9839.5+ 4296.00 = $18678.5

Current marginal rate tax = (18678.5/102100 ) * 100 = 18.3%

User Yogiginger
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