Question

Alan and Sara Winthrop are a married couple who file a joint income tax return. They have two children, and they have legitimate itemized deductions totaling $25,750. Their total income from wages is $169,100. Assume the following tax table is applicable:

Married Couples Filing Joint Returns

If Your Taxable

Income Is You Pay This

Amount on the

Base of the Bracket Plus This Percentage

on the Excess over the

Base Average Tax

Rate at

Top of Bracket

Up to $19,050 $0.00 10.0% 10.0%

$19,050-$77,400 1,905.00 12.0 11.5

$77,400-$165,000 8,907.00 22.0 17.1

$165,000-$315,000 28,179.00 24.0 20.4

$315,000-$400,000 64,179.00 32.0 22.8

$400,000-$600,000 91,379.00 35.0 26.9

Over $600,000 161,379.00 37.0 37.0

What is their average tax rate?

a. 16.3%

b. 17.93%

c. 19.21%

d. 17.20%

e. 14.64%

Answer

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