Question

George, a single taxpayer, earns $80,000 in taxable income and $6,000 in interest from an investment in city of Normal Bonds. Using the U.S. tax rate schedule for year 2019, what is his effective tax rate (round to two decimal places)?

Answer 1

Answer:

Step-by-step explanation:

The effective tax rate is calculated as

82.5% of $80,000 = $66,000

$80,000 - $66,000 = $14,000

$14,000 × 24% = $3360

$3360 + $14089.50 = $17449

Therefore , effective tax rate is

$17,449.50 ÷ $86,000 = 20.29%.