Heather, a Single Taxpayer Who Files as a Head of Household

question 29

Short Answer

Heather, a single taxpayer who files as a head of household, earns $60,000 in taxable income and$5,000 in interest from an investment in city of Oxford Bonds. Using the U.S. tax rate schedule for year 2017, how much federal tax will she owe? What is her average tax rate? What is her effective tax rate? What is her current marginal tax rate? If Heather has an additional $20,000 of taxdeductions, what is her marginal tax rate on these deductions? (Round the tax rates to 2 decimal places, e.g., .12345 as 12.35%)(Use tax rate schedule.)

---

Definitions:

Status Offense

A noncriminal act that is considered a violation of the law only because of the offender's status as a minor, such as truancy or running away from home.

Truancy

The action of staying away from school without permission, often reflecting underlying issues such as family problems or disengagement.

Suicide

The deliberate action of taking one's own life.

Status Offense

An action that is prohibited only to a certain class of people, and most often applied to behaviors forbidden to minors, such as truancy and underage drinking.