Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham bonds. Using the U. S. tax rate schedule for 2019, what is his average tax rate (rounded)

Question

Ezequiel Mcdowell

Business

27 May, 19:13

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham bonds. Using the U. S. tax rate schedule for 2019, what is his average tax rate (rounded)

+5

Answers (1)

Know the Answer?

Livia Shah · Answer 1

Average tax rate = 15.0975%

Explanation:

U. S. tax rate schedule for 2019

($39,475 to $84,200) = $4,543 + (22% over $39,475)

Total income = $65,000

Taxable income = $60,000

$5,000 are not include in taxable income.

Computation:

Tax liability ($39,475 to $84,200) = $4,543 + ($60,000 - $39,475) * 22%

Tax liability ($39,475 to $84,200) = $4,543 + $4,515.5

Tax liability ($39,475 to $84,200) = $9,058.5

Average tax rate = $9,058.5 / $60,000

Average tax rate = 0.150975

Average tax rate = 15.0975%