Bob and Linda are married and have a 2018 taxable income of $280,000. They also received $20,000 of tax-exempt income. Their marginal tax rate is:

Question

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First, we need to calculate Bob and Linda's taxable income by subtracting their tax-exempt income from their total income:

$280,000 - $20,000 = $260,000

Then, we can use the 2018 tax rate schedule to determine their marginal tax rate:

10% on taxable income from $0 to $19,050, plus 
12% on taxable income over $19,050 to $77,400, plus 
22% on taxable income over $77,400 to $165,000, plus 
24% on taxable income over $165,000 to $315,000, plus 
32% on taxable income over $315,000 to $400,000, plus 
35% on taxable income over $400,000 to $600,000, plus 
37% on taxable income over $600,000

Since their taxable income of $260,000 falls within the range of $165,000 to $315,000, their marginal tax rate is 24%.

Bob and Linda Are Married and Have a 2018 Taxable