An explanation of the marginal tax rate and average tax rates for this tax payer.

Another client, Ms. Dunham, has asked you to help her understand how her tax is computed. You need to provide Ms. Dunham with the following:

  • An example of how to calculate the tax liability using the tax rate table and the tax rate formula for a taxpayer with taxable income of $55,000, filing status married filing jointly.
  • An explanation of the marginal tax rate and average tax rates for this tax payer.

Be clear in our elaboration s that Ms. Dunham, a person with no business or tax background, can understand

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