Maureen Smith is a single individual.She claims a standard deduction of $12,000.Her salary for the year was $188,000.Assume the following tax table is applicable. Single Individuals
What is her marginal tax rate?

Question

Maureen Smith is a single individual.She claims a standard deduction of $12,000.Her salary for the year was $188,000.Assume the following tax table is applicable. Single Individuals
What is her marginal tax rate?
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Quizplus · Accepted Answer

Based on the tax table, Maureen falls in the bracket of $157,501 to $200,000 with a tax rate of 32.0%. This means that her marginal tax rate is also 32.0%, which is the tax rate applied to her last dollar of income.

Since she claims the standard deduction of $12,000, her taxable income is $176,000 ($188,000 - $12,000). Using the tax table, her tax liability can be calculated as:

$14,382.50 + 0.32($176,000 - $157,501) = $22,522.50

Therefore, Maureen's best choice would be to pay the calculated tax liability of $22,522.50.

Maureen Smith Is a Single Individual