Consider an individual who earns $95,000,has two children,pays $6,000 in child care expenses for one child,pays $19,000 in college tuition for the other child,pays $6,500 in mortgage interest (mortgage interest is tax deductible),and pays $9,600 in medical expenses.Medical expenses in excess of 7.5 percent of one's income are deductible.Personal exemptions are $3,050 per person (including the tax filer).When the individual's income is $30,000 or above,he/she gets a 12% child care credit.A college credit of 9% of tuition costs is given to those that have income less than $90,000.Her statutory marginal tax rate is 15 percent.What is her actual or effective marginal tax rate?

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The Answer of Consider an individual who earns $95,000,has two children,pays $6,000 in child care expenses for one child,pays $19,000 in college tuition for the other child,pays $6,500 in mortgage interest (mortgage interest is tax deductible),and pays $9,600 in medical expenses.Medical expenses in excess of 7.5 percent of one's income are deductible.Personal exemptions are $3,050 per person (including the tax filer).When the individual's income is $30,000 or above,he/she gets a 12% child care credit.A college credit of 9% of tuition costs is given to those that have income less than $90,000.Her statutory marginal tax rate is 15 percent.What is her actual or effective marginal tax rate?

Consider an Individual Who Earns $95,000,has Two Children,pays $6,000 in Child