Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in city of heflin bonds. (use the u. s tax rate (do not round intermediate calculations. round "federal tax" to 2 decimal places.)a. how much federal tax will he owe? b. what is his average tax rate? c. what is his effective tax rate? d. what is his current marginal tax rate?

Given that,

Taxable income = $75,000

Interest from an investment = $10,000

Using the U.S tax rate schedule in 2017

(a) Federal tax will he owe = $5,226.25 + 25% × ($75,000 - $37,950)

                                            = $5,226.25 +  $9262.5

                                            = $14,488.75

(b)

                                             = 19.32%.

(c)

                                        = 17.05%          

(d) Chuck is currently in the 25 percent tax rate bracket.

His marginal tax rate on increases in income up to $16,900 and deductions from income up to $37,050 is 25 percent.                                                

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return