Table 12-12
United States Income Tax Rates for a Single Individual, 2009 and 2010.

-Refer to Table 12-12.Kurt is a single person whose taxable income is $35,000 a year.What is his marginal tax rate in 2010?

Question

Table 12-12
United States Income Tax Rates for a Single Individual, 2009 and 2010.
 
-Refer to Table 12-12.Kurt is a single person whose taxable income is $35,000 a year.What is his marginal tax rate in 2010?

Quizplus · Accepted Answer

Kurt's taxable income is $35,000, which falls in the 25% tax bracket. However, since he is a single person, he is also subject to the additional 2% tax on taxable income over $32,950. Therefore, his marginal tax rate is 25% + 2% = 27%.

Table 12-12 United States Income Tax Rates for a Single Individual, 2009