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 2017, what is his current marginal tax rate? (Use tax rate schedule.)
A) 33.00%
B) 25.00%
C) 15.00%
D) 28.00%
E) None of the choices are correct

Question

Quizplus · Accepted Answer

For 2017, a single taxpayer with $60,000 in taxable income falls into the 25% tax bracket. The interest from city bonds is tax-exempt and does not affect the marginal tax rate.

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