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The effective income tax rate is defined as the percentage of taxes paid in relations to a tax payers gross income Calculate the effective tax rate for a person with the following profile

The effective income tax rate is defined as the percentage of taxes paid in relations to a tax payer’s gross income. Calculate the effective tax rate for a person with the following profile. Please include your calculation in your response.

Gross income of $60,000.00

Number of exemptions: 2 (assume $3,500.00/exemption)

Allowed itemized deductions:

Donations: $1,000

Mortgage interest: $6,500

State and local taxes: $500.00

Standardized deduction: $6,000

Total tax credits: $1,600.00

Note: Please round your answer to 2 decimal places.

Tax brackets:

Between But Not Over Tax Rate
$0 $5,500 0%
$5,501 $26,250 10%
$26,251 $63,550 15%
$63,551 $132,600 27%
$132,601 $288,350 35%
$288,351 ----- 38.6%
 

Apr 08 2020 Read more Less More

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