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Use the chart below to calculate federal tax payable on taxable income of $150,000. SHOW...

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Finance

Use the chart below to calculate federal tax payable on taxable income of $150,000. SHOW ALL STEPS INVOLVED IN YOUR CALCULATION.

2019 TAXABLE INCOME FEDERAL TAX RATE

1) On the first $47,630 of taxable income 15%

2) On the portion of taxable income over

$47,630 up to $95,259 (i.e. on the next

$47,629 of taxable income) 20.5%

3) On the portion of taxable income over

$95,259 up to $147,667 (i.e. on the next

$52,408 of taxable income) 26%

4) On the portion of taxable income over

$147,667 up to $210,371 (i.e. on the next

$62,704 of taxable income) 29%

5) On taxable income over $210,371 33%

Once you have calculated the federal tax, calculate the AVERAGE TAX RATE. What is the MARGINAL TAX RATE for someone with taxable income of $150,000?

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