The Lindscomb family had the following income in 2006:
|
Salaries
|
Mark
|
$63,500
|
|
|
Ashley
|
57,900
|
Interest on investments
|
IBM bonds
|
$4,750
|
|
New York City bond
|
1,400
|
|
Savings account
|
2,600
|
The family made home mortgage payments that included interest of $16,480, and paid real estate (property) tax of $4,320 on their home. They also paid state income tax of $5,860 and donated $1,250 to well-known charities. The Lindscombs have three dependent children.
a. Calculate the family's federally taxable income.
b. What is their tax liability assuming they file jointly as a married couple?
c. What are their average and marginal tax rates?