Leonardo,who is married but files separately,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 Leonardo earned an additional $30,000 of taxable income this year,what would be the marginal tax rate (rounded) on the extra income for year 2013?
A)27.75%
B)17.50%
C)25.00%
D)28.00%
E)None of these

Question

Quizplus · Accepted Answer

In 2013, for married individuals filing separately, the 25% tax bracket ends at $87,850. With an additional $30,000, Leonardo's taxable income would be $110,000, placing him in the 28% tax bracket.

Leonardo,who Is Married but Files Separately,earns $80,000 of Taxable Income