Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has75)$15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income.If Leonardo earned an additional $30,000 of taxable income this year, what would be the marginal tax rate on the extra income for year 2017? (Use tax rate schedule.)
A) 25.00%
B) 17.50%
C) 28.00%
D) 27.75%
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Based on the tax rate schedule for married individuals filing separately in 2017, Leonardo's taxable income of $80,000 puts him in the 25% tax bracket. If he earns an additional $30,000, his total taxable income would be $110,000 which puts him in the 28% tax bracket. Therefore, the marginal tax rate on the extra $30,000 of taxable income would be 28%.

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