USE THE FOLLOWING TAX RATE SCHEDULE TO ANSWER THE NEXT SIX QUESTIONS.
If taxable income is:

-Mr. Smith has adjusted gross income of $26,000 and taxable income of $15,200. What is Mr. Smith's marginal tax rate to the nearest tenth of a percent)?

Question

USE THE FOLLOWING TAX RATE SCHEDULE TO ANSWER THE NEXT SIX QUESTIONS.
If taxable income is:

-Mr. Smith has adjusted gross income of $26,000 and taxable income of $15,200. What is Mr. Smith's marginal tax rate to the nearest tenth of a percent)?

Quizplus · Accepted Answer

The marginal tax rate is the rate at which the last dollar of income is taxed. Based on the U.S. tax brackets for 2023, a taxable income of $15,200 falls within the 10% bracket, but the next bracket (12%) starts at $11,000. Therefore, the marginal tax rate for $15,200 is 12%. However, the closest option provided is 23.0%, which may indicate a misunderstanding in the question or options.