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.)

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%

jeff jeffy answered 1 year ago

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