Question: 1. George & Martha Washington are married and file a joint income tax return. In 2016 the couple had $ 250,000 of total income and $ 200,000 in taxable income.
a. Calculate the Washington's 2016 federal income tax liability (tax rate schedule is in appendix D in your book).
b. What is the Washington's marginal federal tax rate for 2016?
c. What is the Washington's average tax rate for 2016?
d. What is the Washington's effective tax rate for 2016?
e. The Washington's are expecting an additional $ 20,000 in income. Which of the above rates is relevant to them concerning the additional income? Why?