Leonardo, Who Is Married but Files Separately, Earns $80,000 of Taxable

Multiple Choice

Leonardo, who is married but files separately, earns $80,000 of taxable income. He also has $15,000 in city of Tulsa bonds. His wife, Theresa, earns $50,000 of taxable income. If Leonardo instead had $30,000 of additional tax deductions for year 2016, his marginal tax rate (rounded) on the deductions would be:

A) 28.00%
B) 25.00%
C) 25.41%
D) 16.56%
E) None of these