If Leonardo and his wife file married filing jointly in 2014, what would be their average tax rate (rounded)?
A) 15.00%
B) 25.00%
C) 18.63%
D) 23.73%
E) None of these

Question

Quizplus · Accepted Answer

To calculate the average tax rate, we need to find the total tax liability and divide it by the total income. Leonardo's income is $74,500 and his wife's income is $25,500, making their total income $100,000. From the tax table, we can see that their total tax liability is $18,650. 
Average tax rate = (total tax liability / total income) x 100
= (18,650 / 100,000) x 100
= 18.65%
Rounded to the nearest whole percentage, the average tax rate is 18.63%, which is option C.

If Leonardo and His Wife File Married Filing Jointly in 2014