11 Manny, a single taxpayer, earns $65,000 per year in taxable income and an additional $12,000 per year in city of Boston bonds

Accounting Jan 21, 2021

11 Manny, a single taxpayer, earns $65,000 per year in taxable income and an additional $12,000 per year in city of Boston bonds. What is Manny's current marginal tax rate for 2019? (Use tax rate schedule.) Multiple Choice 11.40 percent O 12.00 percent 13.19 percent 15.63 percent None of the choices are correct.

Expert Solution

Answer

Using Tax rate schedule for 2019

Tax = ($ 65000 - $ 39476) * 22% + ($39475 - $ 9701) * 12% + $ 9700 * 10%

= $ 5615.28 + $ 3572.88 + $ 970

= $ 10158.16

Manny’s current marginal tax rate is = $ 10158.16/ $ 65000 *100 = 15.62 %

Correct option is 15.63 percent

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