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Compute the 2017 tax liability and the marginal and average tax rates for the following taxpayers. Click here to access the 2017 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to three decimal places before converting to a percentage (i.e. 67073 would be rounded to 671 and entered as 67.1%). a. Chandler, who files as a single taxpayer, has taxable income of $93,000. Tax liability: $ Marginal rate: % Average rate: % b. Lazare, who files as a head of household, has taxable income of $56,000. Tax liability: $ Marginal rate: % Average rate: %
Expert Answer
| Since Chandler is a single tax payer and earns $93000, he falls under $91900 to $191650 i.e 28% marginal tax rate bracket. | |||||||||
| His tax liability will be $18713.75 + 28%*(93000-91900) = $18713.75 + 28%*$1100 = $19021.75 | |||||||||
| So | |||||||||
| Tax liability = $19021.75 | |||||||||
| Marginal tax rate = 28% | |||||||||
| Average tax rate = $19021.75/$93000 *100 = 20.45% | |||||||||
| Since Lazre is the head of household with taxable income of $56000, he/she falls underthe tax bracket of 25% | |||||||||
| Tax liability will be $6952.50+25%*($56000-$50800) = $6952.50 + $1300 = $8252.5 | |||||||||
| So | |||||||||
| Tax liability = $8252.5 | |||||||||
| Marginal tax rate = 25% | |||||||||
| Average tax rate = $8252.5/$56000 *100 = 14.74% | |||||||||
