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 and his wife file married filing jointly in 2019, What is Leonardo and Theresa's effective tax rate for 2019 (rounded)? (Use tax rate schedule.)
A)12.00 percent
B)15.63 percent
C)21.04 percent
D)22.00 percent
E)None of the choices are correct

Question

Quizplus · Accepted Answer

To calculate the effective tax rate, first, we need to combine Leonardo and Theresa's taxable income, which is $80,000 + $50,000 = $130,000. The interest from the city of Tulsa bonds is typically exempt from federal taxes, so it doesn't add to their taxable income. Next, we would use the 2019 tax rate schedules for married filing jointly to calculate the total tax on their combined income. However, without the specific tax brackets and rates provided in the question or a direct calculation showing the effective tax rate, we cannot determine the exact effective tax rate from the choices given. The effective tax rate is calculated by taking the total tax divided by the total taxable income. Since the calculation specifics or the tax brackets for 2019 are not provided, the correct answer cannot be determined from the options given.

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