Campbell, a single taxpayer, earns $410,000 in taxable income and $2,200 in interest from an...
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Accounting
Campbell, a single taxpayer, earns $410,000 in taxable income and $2,200 in interest from an investment in State of New York bonds. (Use the U.S. tax rate schedule).
Required:
If Campbell earns an additional $15,500 of taxable income, what is her marginal tax rate on this income?
What is her marginal rate if, instead, she had $15,500 of additional deductions?
Individuals
Schedule X-Single
If taxable income is over:
But not over:
The tax is:
$ 0
$ 9,875
10% of taxable income
$ 9,875
$ 40,125
$987.50 plus 12% of the excess over $9,875
$ 40,125
$ 85,525
$4,617.50 plus 22% of the excess over $40,125
$ 85,525
$163,300
$14,605.50 plus 24% of the excess over $85,525
$163,300
$207,350
$33,271.50 plus 32% of the excess over $163,300
$207,350
$518,400
$47,367.50 plus 35% of the excess over $207,350
$518,400
$156,235 plus 37% of the excess over $518,400
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