marcus earns $64,300 annually and is married with no dependents. his state uses a graduated income tax…

marcus earns $64,300 annually and is married with no dependents. his state uses a graduated income tax system: - first $1,000 taxed at 1.5% - next $2,000 taxed at 3% - next $2,000 taxed at 4.5% - over $5,000 taxed at 5% assuming that the exemption is $2,000 per person, calculate his total annual state income tax $3,930 $2,930 $1,930 marcus earns $64,300 annually and is married with no dependents. his state uses a graduated income tax system: - first $1,000 taxed at 1.5% - next $2,000 taxed at 3% - next $2,000 taxed at 4.5% - over $5,000 taxed at 5% assuming that the exemption is $2,000 per person, calculate his state tax deduction per bi - weekly paycheck. $56.35 $112.69 $122.08

marcus earns $64,300 annually and is married with no dependents. his state uses a graduated income tax system: - first $1,000 taxed at 1.5% - next $2,000 taxed at 3% - next $2,000 taxed at 4.5% - over $5,000 taxed at 5% assuming that the exemption is $2,000 per person, calculate his total annual state income tax $3,930 $2,930 $1,930 marcus earns $64,300 annually and is married with no dependents. his state uses a graduated income tax system: - first $1,000 taxed at 1.5% - next $2,000 taxed at 3% - next $2,000 taxed at 4.5% - over $5,000 taxed at 5% assuming that the exemption is $2,000 per person, calculate his state tax deduction per bi - weekly paycheck. $56.35 $112.69 $122.08

Answer

Answer:

  1. First sub - question:
    • Calculate the taxable income: Marcus is married, so the exemption is $2000\times2 = $4000$. Taxable income = $64300 - 4000=60300$.
    • Calculate the tax for each bracket:
      • For the first $1000$: Tax = $1000\times0.015 = 15$.
      • For the next $2000$: Tax = $2000\times0.03 = 60$.
      • For the next $2000$: Tax = $2000\times0.045 = 90$.
      • Remaining taxable income = $60300-(1000 + 2000+2000)=55300$. Tax on the remaining amount = $55300\times0.05 = 2765$.
      • Total tax = $15 + 60+90 + 2765=2930$.
  2. Second sub - question:

    • Annual exemption = $4000$.

    • Number of bi - weekly paychecks in a year = $\frac{52}{2}=26$.

    • Bi - weekly exemption deduction = $\frac{4000}{26}\approx153.85$. But the question asks for state tax deduction per bi - weekly paycheck related to the tax calculation. First, we know the total annual tax is $2930$. Bi - weekly tax deduction = $\frac{2930}{26}\approx112.69$.

    • First sub - question answer: $$2930$

    • Second sub - question answer: $$112.69$

Explanation:

Step1: Calculate taxable income

Taxable income = Annual income−Total exemption. Since Marcus is married, total exemption is $2000\times2 = 4000$, so taxable income = $64300 - 4000 = 60300$.

Step2: Calculate tax for each bracket

For the first bracket of $1000$ at $1.5%$, tax = $1000\times0.015$. For the second bracket of $2000$ at $3%$, tax = $2000\times0.03$. For the third bracket of $2000$ at $4.5%$, tax = $2000\times0.045$.

Step3: Calculate tax on remaining income

Remaining income = Taxable income−Sum of incomes in previous brackets. Tax on remaining income = Remaining income×$0.05$.

Step4: Calculate total annual tax

Total annual tax = Sum of taxes from all brackets.

Step5: Calculate bi - weekly tax deduction for the second sub - question

Bi - weekly tax deduction = $\frac{Total\ annual\ tax}{Number\ of\ bi - weekly\ paychecks}$.