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 2020, what is his current marginal tax rate? (Use tax rate schedule.)
A)12.00 percent
B)22.00 percent
C)24.00 percent
D)32.00 percent
E)None of the choices are correct

Question

Quizplus · Accepted Answer

According to the tax rate schedule for year 2020, the taxable income between $40,126 and $85,525 is taxed at a rate of 22 percent. Therefore, Marc's current marginal tax rate is 22 percent, as his taxable income of $60,000 falls within this bracket.

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