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
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