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 year 2017? (Use tax rate schedule in the text)
A) 18.44%
B) 28.00%
C) 15.57%
D) 22.86%
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

The marginal tax rate for a single taxpayer with $65,000 in taxable income in 2017 is 25%, according to the IRS tax brackets for that year. The income from city bonds is typically tax-exempt at the federal level, so it does not affect the marginal tax rate.

Manny,a Single Taxpayer,earns $65,000 Per Year in Taxable Income and an Additional