2.3: graduated state income tax\nfor questions 9 and 10 (but not 11!), please use the following…
2.3: graduated state income tax\nfor questions 9 and 10 (but not 11!), please use the following information:\nfirst $1,000 --> tax rate 1.5%\nnext $2,000 --> tax rate 3.0%\nnext $2,000 --> tax rate 4.5%\nover $5,000 --> tax rate 5.0%\nalso each person/spouse/dependent in the household counts as a $2,000 exemption each.\n9. heather benson earned $29,950 this year and is single with no dependents. use the table to find a.) the annual state income tax withheld and b.) the income tax withheld per month.
Answer
Explanation:
Step1: Calculate tax for first $1,000
The tax rate for the first $1,000 is 1.5%. So the tax amount is $1000\times0.015 = 15$.
Step2: Calculate tax for the next $2,000
The tax rate for the next $2,000 is 3.0%. So the tax amount is $2000\times0.03=60$.
Step3: Calculate tax for the next $2,000
The tax rate for the next $2,000 is 4.5%. So the tax amount is $2000\times0.045 = 90$.
Step4: Calculate the amount over $5,000
Heather's income is $29,950. The amount over $5,000 is $29950 - 5000=24950$. The tax rate for this amount is 5.0%. So the tax amount is $24950\times0.05=1247.5$.
Step5: Calculate total annual tax
The total annual state - income tax is $15 + 60+90 + 1247.5=1412.5$.
Step6: Calculate monthly tax
The monthly income - tax withheld is $\frac{1412.5}{12}\approx117.71$.
Answer:
a. The annual state income tax withheld is $1412.5. b. The income tax withheld per month is approximately $117.71.