Question

i need help these questions from Taxation of individuals 2020 edition book

Chuck, a single taxpayer, carns 580,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. Using the US tax rate schedule how much federal tax will he owe? QUESTION 2 Chuck, a single taxpayer, carns $80,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. What is his averse tax rate (Cam your answer two decimals, ie, 20.05) QUESTION 3 Chuck, a single taxpayer, cams 580,000 in taxable income and S10,000 in interest from an investment in City of Heflin bonds. What is his effective tax rate? QUESTION 4 Chuck, a single taxpayer, earns $80,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. What is his current marginal tax rate?

Answer 1

QUESTION 1

Chuck' s taxable income = $80,000

So Chuck will owe federal tax = $80,000*22% (22% taken from the U.S tax rate schedule 2019 - 2020)

= $17,600

So Chuck will owe federal tax is $17,600

QUESTION 2

Chuck' s taxable income = $80,000

Average Tax rate = Total tax/ Taxable Income*100

= $17,600/$80,000*100

= 22%

QUESTION 3

Chuck' s taxable income = $80,000

Effective Tax Rate =  Total tax/ Total Income*100

= $17,600/90000*100

=19.56%

QUESTION 4

As per the U.S tax rate schedule 2019 - 2020 the current marginal tax rate is 22%