Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo instead had $30,000 of additional tax deductions for year 2018, his marginal tax rate (rounded) on the deductions would be: (Use tax rate schedule)
A) 12.00%
B) 13.88%
C) 22.00%
D) 16.37%
E) None of the choices are correct.

Question

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo instead had $30,000 of additional tax deductions for year 2018, his marginal tax rate (rounded) on the deductions would be: (Use tax rate schedule)
A) 12.00%
B) 13.88%
C) 22.00%
D) 16.37%
E) None of the choices are correct.

Quizplus · Accepted Answer

(6,939.50 − 13,539.50)/(50,000 − 80,000) = 22.00%

Leonardo, Who Is Married but Files Separately, Earns $80,000 of Taxable