Nick and Jessica Are Married Taxpayers That File Married Filing

question 92

Essay

Nick and Jessica are married taxpayers that file married filing separately. Jessica earns $250,000 of taxable income per year. Nick earns $130,000 of taxable income per year. Using the appropriate U.S. tax rate schedule for year 2020, how much tax does each of them pay? What are their marginal and average tax rates? How much tax would they save, if any, if they filed jointly? (Round the tax rates to two decimal places, e.g., .12345 as 12.35 percent.)(Use tax rate schedule.)

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Definitions:

Primary Group

A small social group whose members share personal and enduring relationships, often characterized by long-term, emotional connections.

Co-workers

Individuals who work together in the same organization or workplace.

Family

Family denotes a social and biological unit consisting of parents and their children, and often extended to include relatives, bound by kinship, emotional ties, or legal obligations.

Social Category

A grouping of individuals who share a common characteristic or attribute but do not necessarily interact or identify with each other.