1. An unmarried taxpayer with no dependents who takes the standard deduction, has taxable income of $75,000. He is not entitled to any tax credits. Show the calculation of his 2015 tax liability.
2. What is the marginal tax rate of the taxpayer from the previous question?
3. This will demonstrate a “with and without” calculation. Assume the taxpayer from question #1 has a chance to earn an additional $30,000 this year. Ignore FICA tax. If he decides to do the work, he will earn $30,000 and his taxable income will rise to $105,000. Compute the tax on that amount of taxable income.
Subtract the tax from question #1 from the tax you just calculated in Question 3. The difference is the additional tax the taxpayer will pay on the $30,000. (Use 2015 tax rates for all)