USE THE FOLLOWING TAX SCHEDULE TO ANSWER THE NEXT QUESTION.

-Amanda Huggins has an adjusted gross income of $45,500 and has itemized deductions and exemptions totaling $6,700. What is Ms. Huggins' marginal tax rate?

Question

USE THE FOLLOWING TAX SCHEDULE TO ANSWER THE NEXT QUESTION.

-Amanda Huggins has an adjusted gross income of $45,500 and has itemized deductions and exemptions totaling $6,700. What is Ms. Huggins' marginal tax rate?

Quizplus · Accepted Answer

To determine the marginal tax rate, we must first find Ms. Huggins' taxable income by subtracting her itemized deductions and exemptions from her adjusted gross income:

Taxable income = $45,500 - $6,700 = $38,800

Looking at the tax schedule, we see that $38,800 falls into the third tax bracket, which has a marginal tax rate of 28%. Therefore, the answer is D) 28.0%.