In your current job, you earn $55,000. You take the standard deduction of $12,200. You have an offer of a new job working for a different employer. Your salary would go up by $5,000. Given your current taxable income, what is your marginal tax rate?
$$\begin{array} { c c c }
\hline \begin{array} { l }
\text { For taxable } \
\text { income over } \ldots
\end{array} & \begin{array} { c }
\ldots \text { but not } \
\text { over } \ldots
\end{array} & \begin{array} { c }
\ldots \text { the marginal } \
\text { tax rate is: }
\end{array} \
\hline \$ 0 & \$ 9,700 & 10 \% \
\$ 9,700 & \$ 39,475 & 12 \% \
\$ 39,475 & \$ 84,200 & 22 \% \
\$ 84,200 & \$ 160,725 & 24 \% \
\$ 160,725 & \$ 204,100 & 32 \% \
\$ 204,100 & \$ 510,300 & 35 \% \
\$ 510,300 & - & 37 \% \
\hline
\end{array}$$

Question

In your current job, you earn $55,000. You take the standard deduction of $12,200. You have an offer of a new job working for a different employer. Your salary would go up by $5,000. Given your current taxable income, what is your marginal tax rate?
$$\begin{array} { c c c } 
\hline \begin{array} { l } 
\text { For taxable } \
\text { income over } \ldots
\end{array} & \begin{array} { c } 
\ldots \text { but not } \
\text { over } \ldots
\end{array} & \begin{array} { c } 
\ldots \text { the marginal } \
\text { tax rate is: }
\end{array} \
\hline \$ 0 & \$ 9,700 & 10 \% \
\$ 9,700 & \$ 39,475 & 12 \% \
\$ 39,475 & \$ 84,200 & 22 \% \
\$ 84,200 & \$ 160,725 & 24 \% \
\$ 160,725 & \$ 204,100 & 32 \% \
\$ 204,100 & \$ 510,300 & 35 \% \
\$ 510,300 & - & 37 \% \
\hline
\end{array}$$

Quizplus · Accepted Answer

Your current taxable income after the standard deduction is $55,000 - $12,200 = $42,800, which falls into the 22% marginal tax rate according to the provided tax brackets.

In Your Current Job, You Earn $55,000 A)22% B)12% C)10% D)24

In Your Current Job, You Earn $55,000 A)22%
B)12%
C)10%
D)24