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Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income.

If Leonardo and his wife file married filing jointly in 2021, what would be their average tax rate?

Sagot :

Martebi

When Leonardo and his wife file married filing jointly in 2021, the average tax rate will be 15.63 percent

What is the tax rate about?

In the question above, Leonardo's taxable income = $80,000

Theresa's taxable income = $15,000

Total taxable income for both of them will be:

$ 80,000 + $ 50,000 = $ 130,000

When you make use of the Schedule Y-1,

The amount of the tax on total income shall be said as:

Tax liability = $9,086 + (($130,000 - $78,950) * 22%)

= $9,086 +($51,050 * 22%)

= $9,086 + $11,231

= $ 20,317

To get the Effective tax rate, it will be:

= tax liability / Total taxable income Effective tax rate

= [tex]\frac{20,317}{30000}[/tex]  that is also written as $20,317/ $130,000

So, the  average tax rate is = 15.63%

Therefore, the average tax rate will be = 15.63 percent

Learn more about tax rate from

https://brainly.com/question/9437038

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