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Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000...

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 and his wife file married filing jointly in 2019, what would be their average tax rate (rounded)? (Use tax rate schedule.)

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Expert Solution

Filing status Joint
Particulars Amount Amount
Gross income:
Salary $        130,000
Interest $                   -  
Other income $                   -  
Gross income $        130,000
For AGI deductions $                   -  
Adjusted gross income $        130,000
Less:
Standard deduction $          24,400
Itemized deduction $                   -  
Higher of the two $          24,400
Taxable income $        105,600
Income tax liability $    14,949.00
[ 9086 + ( 105600 - 78950 ) × 0.22 ]

Average tax rate = 14949/105600 = 14.16%


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