Question

Chuck, a single taxpayer, earns $84,500 in taxable income and $23,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)



Required:



If Chuck earns an additional $56,000 of taxable income, what is his marginal tax rate on this income?
What is his marginal rate if, instead, he had $56,000 of additional deductions?


(For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.)

Answer 1

Can you please show what your work on this is so far, or let us know where you're getting stuck?

Answer 2

for the first question:
Taxable income is 163500
which is on the 32% range

for the second question:
Taxable income is 51,500
which is on the 22% range

Answer 3

I need to know if correct because this is my second time answering the question