Consumer | 4-3 Activating Strategy

The tax percentages listed are marginal tax rates which means that the percentage tax only applies to the income in that given range.

What is the marginal tax rate on a Single filer with $75,000 taxable income?

• 10%

• 12%

• 22%

• 24%

• 32%

What is the maximum amount a married couple filing jointly could make and still fall within the 24% tax bracket?

• $94,300

• $201,050

• $383,900

• $487,450

How would you describe the relationship between income levels and marginal tax rates?

As your income level increases, your marginal tax rate ​ (a)   .

• also increases
• decreases
• stays the same

Assume a Single person and Married Couple (filing jointly) have the same income of $65,000.

Who would pay a higher income tax?

• Single person

• Married Couple (filing jointly)

• Both pay the same

• Cannot be determined

Jody earns $100,000 and says he'll owe $24,000 in federal income taxes as a Single filer.

Is he correct?

• Yes, he is correct.

  Since he earns $100,000, he'll be in the 24% tax bracket. Therefore, he'll owe $24,000.

• No, he is not correct.

  His entire $100,000 salary will not be taxed at the 22% tax rate; the first $11,600 of his income will be taxed at 10%.