 # Question & Answer: Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are base…..

Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was \$442,000. Round your answers to two decimal places.

Don't use plagiarized sources. Get Your Custom Essay on
Question & Answer: Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are base…..
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS \$13/PAGE

As Susan and Stan Britton filling joint income tax return in 2017, so;

(i) Federal tax liability = \$112728 + (\$25300 * 35 / 100) = \$121583

Note: As per given tax slab \$112728 is base tax for this taxable income and for excess amount tax will be levied at

the rate of 35% (442000 – 416700) = \$ 25300 * 35 / 100 = \$8855, Thus total tax liability = (\$112728 + \$8855)

\$121583

(ii) Marginal tax rate = For Susan and Stan Britton Rate of marginal tax will be 35%

(iii) Average tax rate = For Susan and Stan Britton, Average tax rate will be \$121583 *100 / \$442000 = 27.51 %