Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 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? (Use tax rate schedule.)
A)12.00 percent
B)22.00 percent
C)24.00 percent
D)32.00 percent
E)None of the choices are correct

Question

Quizplus · Accepted Answer

Based on the 2019 U.S. tax rate schedule, a single taxpayer with a taxable income of $60,000 falls into the 22% tax bracket. The $5,000 in interest income is added to this taxable income to determine the marginal tax rate, which is the rate paid on the last dollar earned. Therefore, Marc's current marginal tax rate is 22%.

Marc, a Single Taxpayer, Earns $60,000 in Taxable Income and $5,000