Q9) Assume that you currently work in the RST industry and earned $91,000 in taxable income in 2019 as a single. Refer to the tax table shown below (Table 1) for the following questions.
Table 1. Tax Brackets and Rates, 2019
For Unmarried
Rate Individuals, Taxable
Income Over
For Married Individuals Filing
Joint Returns, Taxable Income
Over
10% $0
$0
12% $9,700
$19,400
22%
$39,475
$78,950
24%
$84,200
$168,400
32% $160,725
$321,450
35% $204,100
$408,200
37% $510,300
$612,350
a. What is your marginal and effective tax rate?
b. If you expect to have a tax deduction of $11,000 due to your student loan interests and medical expenses, what is your effective tax rate?
c. If you expect to have a tax credit of $11,000 due to your higher education expenses (e.g., tuition and books), what is the total tax that you owe?