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 2020, what is his average tax rate? (Round your final answer to two decimal places.)(Use tax rate schedule.)
A)14.98 percent
B)13.83 percent
C)11.34 percent
D)22.00 percent
E)None of the choices are correct

Question

Quizplus · Accepted Answer

Marc's taxable income is $60,000. The tax on this amount is $9,700. His interest income is $5,000. The tax on this amount is $0. His total tax is $9,700. His average tax rate is $9,700/$65,000 = 14.98%.

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