Answer:
Tax Liability: $5,840
Marginal Tax Rate: 12%
Average Tax Rate: 11%
Step-by-step explanation:
*The tax liability is determined using the tax rate for 2019 tax bracket.
For married couple filling jointly, the tax rates for taxable income of $51,900 are:
Tax Rate Income Bracket
10% $0 – $19,400
12% $19,401 – $78,950
So the tax liability will be:
10% * $19,400 = $1,940 (first $19,400)
12% * $32,500 = $3,900 (Balance of $32,500)
Total tax liability = $5,840.
*Marginal tax rate is the tax rate paid on the last unit of income, the last dollar. In this case, the last dollar was taxed at 12%. Hence the marginal tax rate is 12%.
*Average tax rate is the proportion of taxable income that is to be paid as tax. It is derived by dividing the tax liability by taxable income.
Average tax rate = $5840
$51,900
Average tax rate =11.2524%
Average tax rate = 11% (rounded up to whole figure)