Beth is single and lives in New York. Beth earned $280,000 in 2011. The following table shows the IRS tax rates for a single taxpayer in 2011
On Taxable Income .. Tax Rates
up to $8,500 10%
From $8,500 to $34,500 15%
From $34,500 to $83,600 25%
From $83,600 to $174,400 28%
From $174,400 to $379,150 33%
Over $379,150 35%
Fill in the Following table with Beth's marginal tax rate, total amount of taxes owed, and average tax rate for 2011:
Marginal tax rate: ____%
Taxes owed: ____$
Average tax rate: ____%
To determine Beth's marginal tax rate, total amount of taxes owed, and average tax rate for 2011, we need to calculate her taxable income first.
To calculate her taxable income, we need to subtract any applicable deductions or exemptions from her earnings. However, since we don't have any information about Beth's deductions or exemptions, we'll assume her taxable income is equal to her earnings of $280,000.
Now, let's fill in the table:
1. Marginal tax rate:
The marginal tax rate is the rate at which the last dollar earned is taxed. To find the marginal tax rate, we need to determine the tax bracket that Beth falls into. In Beth's case, her taxable income of $280,000 falls into the "From $174,400 to $379,150" tax bracket with a tax rate of 33%. Therefore, Beth's marginal tax rate is 33%.
2. Taxes owed:
To calculate the total amount of taxes owed, we need to multiply Beth's taxable income by her marginal tax rate. In this case, the calculation would be:
Taxes owed = Taxable income * Marginal tax rate
Taxes owed = $280,000 * 33% = $92,400
3. Average tax rate:
The average tax rate is the total amount of taxes paid divided by the taxable income. To calculate the average tax rate, we divide the taxes owed by the taxable income and multiply by 100 to express it as a percentage. In this case, the calculation would be:
Average tax rate = (Taxes owed / Taxable income) * 100
Average tax rate = ($92,400 / $280,000) * 100 = 33%
Therefore, filling in the table:
Marginal tax rate: 33%
Taxes owed: $92,400
Average tax rate: 33%