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Renee and David plan to file taxes as married filing jointly. They have a combined taxable income of [tex]$\$[/tex]51,325$. Use the table to determine the amount of tax due, and calculate their effective tax rate, rounding to the nearest tenth.

\begin{tabular}{|c|c|c|c|c|c|}
\hline
\multicolumn{2}{|c|}{\begin{tabular}{l}
If line 43 \\
(taxable \\
income) is
\end{tabular}} & \multicolumn{3}{|c|}{ And you are- } & \multirow[b]{2}{*}{\begin{tabular}{l}
Head \\
of \\
household
\end{tabular}} \\
\hline
\begin{tabular}{l}
At \\
least
\end{tabular} & \begin{tabular}{l}
But \\
less \\
than
\end{tabular} & Single & \begin{tabular}{l}
Married \\
filing \\
jointly
\end{tabular} & \begin{tabular}{l}
Married \\
filing \\
separately
\end{tabular} & \\
\hline
& & \multicolumn{4}{|c|}{ Your tax is- } \\
\hline
\multicolumn{2}{|c|}{51,000} & & & & \\
\hline
51,000 & 51,050 & 8,495 & 6,721 & 8,495 & 7,009 \\
\hline
51,050 & 51,100 & 8,508 & 6,729 & 8,508 & 7,021 \\
\hline
51,100 & 51,150 & 8,520 & 6,736 & 8,520 & 7,034 \\
\hline
51,150 & 51,200 & 8,533 & 6,744 & 8,533 & 7,046 \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To determine the amount of tax due and the effective tax rate for Renee and David, let's follow these steps:

Step 1: Identify the Tax Bracket
Renee and David's combined taxable income is [tex]$51,325$[/tex]. We need to identify the correct tax bracket from the table provided. The table indicates different tax dues for different income ranges and filing statuses.

Examining the table, the appropriate row for an income of [tex]$51,325 is not explicitly listed. However, by looking at the closest preceding value in the table, we find: Income range: \( 51,000 \) to \( 51,050 \) For a taxable income between $[/tex]51,000 and [tex]$51,050, the tax due for "Married filing jointly" is listed as $[/tex]6,721. Given the absence of more precise brackets around [tex]$51,325, we associate this nearest bracket's value. Step 2: Calculate the Effective Tax Rate The effective tax rate is calculated as: \[ \text{Effective Tax Rate} = \left( \frac{\text{Tax Due}}{\text{Taxable Income}} \right) \times 100 \] Substitute the values we have: \[ \text{Tax Due} = 6,721\, \text{USD} \] \[ \text{Taxable Income} = 51,325\, \text{USD} \] So, the effective tax rate calculation becomes: \[ \text{Effective Tax Rate} = \left( \frac{6,721}{51,325} \right) \times 100 \] When computed, this gives: \[ \text{Effective Tax Rate} \approx 13.1\% \] Conclusion: For Renee and David, filing jointly with a combined taxable income of $[/tex]51,325:
- The amount of tax due is $6,721.
- The effective tax rate is approximately 13.1%.

This rounded effective tax rate helps understand what portion of their income is paid as taxes.

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