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Use the chart below to calculate federal tax payable on taxable income of $150,000. SHOW ALL STEPS INVOLVED IN YOUR CALCULATION.
2019 TAXABLE INCOME FEDERAL TAX RATE
1) On the first $47,630 of taxable income 15%
2) On the portion of taxable income over
$47,630 up to $95,259 (i.e. on the next
$47,629 of taxable income) 20.5%
3) On the portion of taxable income over
$95,259 up to $147,667 (i.e. on the next
$52,408 of taxable income) 26%
4) On the portion of taxable income over
$147,667 up to $210,371 (i.e. on the next
$62,704 of taxable income) 29%
5) On taxable income over $210,371 33%
Once you have calculated the federal tax, calculate the AVERAGE TAX RATE. What is the MARGINAL TAX RATE for someone with taxable income of $150,000?
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