Sharon is getting ready to do her taxes. She is single and lives in San Francisc

Question

Sharon is getting ready to do her taxes. She is single and lives in San Francisco. Sharon earned $100,000 in 2011. She reviews the following table, which shows the IRS tax rates for a single taxpayer in 2011. Based on the IRS table, Sharon calculates that her marginal tax rate is_^r_when her annual income is $100,000. Sharon calculates that she owes in income taxes for 2011. Sharon then calculates that her average tax rate is based on the annual income level and the amount of taxes she owes for 2011. After figuring out what she owes in taxes in 2011, Sharon decides to ask an accountant for tax advice. The accountant claims that he has found a legal way to shelter $2,000 of taxable income from the federal government. The maximum amount that Sharon is willing to pay to learn this strategy and reduce her taxable income by $2,000 is

Explanation / Answer

Ans. 1 28% (Because her income falls in that particular bracket)

Ans 2. 28% x $100,000 = $28,000

Ans 3. 28%

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