Mr.and Mrs.Upton's marginal tax rate on their joint return is 33%.This year,their itemized deductions totaled $13,800,and their standard deduction (MFJ)was $12,700.Compute their incremental tax savings from their itemized deductions.

Question

Quizplus · Accepted Answer

The incremental tax savings is the difference between the itemized deductions and the standard deduction, multiplied by the marginal tax rate. The difference is $13,800 - $12,700 = $1,100. The tax savings is $1,100 * 33% = $363.

MrAnd MrsUpton's Marginal Tax Rate on Their Joint Return Is 33