Question

Required: Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases.

Use the appropriate 2019 Tax Tables and Tax Rate Schedules.

Single taxpayer, taxable income of $38,862. Single taxpayer, taxable income of $89,889.

Tax Liability Marginal Tax Rate Average Tax Rate

A. _________ _____________ % ______________ %

B. _________ _____________ % ______________ %

Answer 1

	Taxable Income	$                                       38,862.00
	Status	Single taxpayer
a)	Tax due=$970+($38862-9700)*12%	$                                         4,469.44
b)	Marginal tax rate=	12%
c )	Effective average tax rate=($4469.44/38862)*100	11.50%
	Tax Rate (Individual)	Marginal Tax Rate	Tax Owed
	(0-$9700)	10%	10% of taxable Income
	($9701-$39475)	12%	$970+($39475-$9700)*12%
	($39476-$84200)	22%	$4543+($84200-$39476)*22%
	$84201-$160725)	24%	$14382.50+($160725-84201)*24%
	Taxable Income	$                                       89,889.00
	Status	Single taxpayer
a)	Tax due=$14382.50+($89889-84200)*24%	$                                       15,747.86
b)	Marginal tax rate=	24%
c )	Effective average tax rate=($15747.62/89889)*100	17.52%
Ans	Tax Due	Marginal Tax Rate	Average Tax Rate
A)	$                                                                                4,469.44	12%	11.50%
B)	$                                                                              15,747.86	24%	17.52%
	Marginal Tax Rate=It is the highest tax rate applies to Income.
	Average Tax Rate=(Total amount of tax liability)/Total Income