It is April 14, 2016. You are Madelyn Mooney (SS# 789-14-6395), you graduated from University in 2010 and you are now the Marketing Director for Rottweiler, Inc. in Millvale, New York. You make $45,000 per year. You’re single and have no dependents. Over the last year you (as Madelyn) earned $240 of taxable interest on a savings account you have at a local bank. According to your recently received 2015 W-2 Form from Rottweilers, Inc. federal income tax withheld was $6,300. Assume that any refund will be automatically transferred into your checking account. Below is a copy of Madelyn’s voided check.
a. Using 2015 tax rates (Google them), fill out a 1040EZ form for yourself (as Madelyn).
b. What is your average tax rate?
c. What is your marginal tax rate?