Scot and vidia married taxpayers earn 40000 if scot and


Problem

Can someone please show the breakdown i.e how figures are arrived at.

Scot and Vidia, married taxpayers, earn $40,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule for married filing jointly). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a. If Scot and Vidia earn an additional $4,500 of taxable income, what is their marginal tax rate on this income?

b. How would your answer differ if they, instead, had $4,500 of additional deductions?

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