Alan and Sara Winthrop are a married couple who file a joint income tax return....
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Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $25,750. Their total income from wages is $224,500. Assume the following tax table is applicable:
Married Couples Filing Joint Returns
If Your Taxable Income Is
You Pay This Amount on the Base of the Bracket
Plus This Percentage on the Excess over the Base
Average Tax Rate at Top of Bracket
Up to $19,750
$0.00
10.0%
10.0%
$19,750-$80,250
1,975.00
12.0
11.5
$80,250-$171,050
9,235.00
22.0
17.1
$171,050-$326,600
29,211.00
24.0
20.4
$326,600-$414,700
66,543.00
32.0
22.8
$414,700-$622,050
94,735.00
35.0
26.9
Over $622,050
167,307.50
37.0
37.0
What is their marginal tax rate?
a. 32.0%
b. 12.0%
c. 22.0%
d. 35.0%
e. 24.0%
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