I have an Federal Income Tax question?

I am doing my homework and I have one questions that I am stuck on. The question is: If a person's 2006 taxable income is $40,000 ---- he/she pays $6565 in Federal income tax. BUT if the taxable income increases to $41,000 ---- he/she pays $6814 in Federal tax. What is the "marginal" tax bracket? Can ANYONE help?!

Public Comments

1. The extra income is $1000. The extra tax is $249, so the marginal rate on that income is $249/$1000 = .249 or about 25%. The marginal rate means the percent of tax paid on the next dollar of income you have.
2. Here is the rate table: http://www.irs.gov/formspubs/article/0,,id=164272,00.html And here is a marginal rate calculator: http://www.dinkytown.net/java/TaxMargin.html
3. The key to your answer to distinguish between "Tax Bracket" vs. the Tax Rate Tables. For the sake of simplicity the Internal Revenue Service has created "marginal tax brackets", whereas the Tax rate tables are created for people who have taxable income above $3336,500. This is so since most people who have such income may also be subject to AMT. The marginal tax bracket your client will stay in is 25% (The first $30,650 is calculated at 15%, any amount above that will be calculate at 25%, and added to the amount of $30,650 * .15)
4. Based on 2006 Tax Schedules at the link below, this person is filing as the head of household and is on the 15% to 25%.