Leonardo earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Susie earns $750,000 in taxable income and files as head of household for year 2016, what is Susie's average tax rate (rounded)?
A) 33.11%
B) 33.78%
C) 35.00%
D) 39.60%
E) None of these

Question

Quizplus · Accepted Answer

[$125,936 + .396($750,000 - $441,000)]/750,000 = 33.11%

Leonardo Earns $80,000 of Taxable Income