Gwen's marginal tax bracket is 24%. Under the terms of a divorce decree settled in 2018, Gwen pays alimony of $24,000 per year. Gwen's after tax cost for the $24,000 payment is

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Under the tax laws applicable to divorce decrees settled before 2019, alimony payments are deductible by the payer. Therefore, Gwen can deduct the $24,000 from her taxable income, reducing her tax liability by 24% of $24,000, which is $5,760. Thus, her after-tax cost is $24,000 - $5,760 = $18,240.

Gwen's Marginal Tax Bracket Is 24