Manny, a single taxpayer, earns $65,000 per year in taxable income and an additional $12,000 per year in city of Boston bonds.What is Manny's current marginal tax rate for 2019? (Use tax rate schedule.)
A)11.40 percent
B)12.00 percent
C)13.19 percent
D)15.63 percent
E)None of the choices are correct.

Question

Quizplus · Accepted Answer

For the tax year 2019, the U.S. federal income tax brackets for a single filer were 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Manny's taxable income of $65,000 places him in the 22% marginal tax bracket. However, the interest from city of Boston bonds is tax-exempt at the federal level, meaning it does not affect his federal tax rate. Therefore, none of the provided choices accurately reflect Manny's marginal tax rate for 2019, which should be 22%.

Manny, a Single Taxpayer, Earns $65,000 Per Year in Taxable