Chuck, a single taxpayer, earns $80,750 in taxable income and $30,750 in interest from an investment...

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Accounting

Chuck, a single taxpayer, earns $80,750 in taxable income and$30,750 in interest from an investment in City of Heflin bonds.(Use the U.S. tax rate schedule.)
Required: If Chuck earns an additional $64,500 of taxableincome, what is his marginal tax rate on this income? What is hismarginal rate if, instead, he had $64,500 of additionaldeductions?

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US tax rate schedule for Individuals For the Year 2018 Taxable Income Tax Rate 0 to 9525 10 9526 to 38700 12 38701 to 82500 22 82501 to 157500 24 157501 to 200000 32 200000 to 500000 35 Over 500000 37 Tax brackets apply only to your taxable incomethat is your total income minus all your adjustments exemptions and deductions Interest from the Investment in the state bonds is exempted and therefore will not be included in calculation of taxpayers taxable income Therefore Taxable income 80750 Current Marginal income tax rate applicable to Chuck 22 Federal Income tax Liability on taxable income of 80750 Tax rate Tax Amount 0 to 9525 10 9525 x 10 95250 9526 to 38700 12 29175 x 12 3501 38701 to See Answer

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