Question

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 2019, what is his current marginal tax rate?

Answer 1

Answer:

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

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%