In 2012, to help pay for college, you worked part-time at a local restaurant, ea

Question

In 2012, to help pay for college, you worked part-time at a local restaurant, earning $20,000 in wages and tips. Use the following information to calculte your income tax. orpeople whoare not self-employed,the 2012 FICA tax rates were as follows: 2012 Marginal Tax Rates, Standard Deductions, and Exempti 5.65% on the first $110,000 from wages and tips 1.45% on income in excess of $110,000 Tax Rate 10% 15% Single up to $8700 $8701 to 35,350 Standard Deduction $5950 Exemptions $3800 Taxpayers are not permitted to subtract adjustments, exemptions, or deductions on Calculate your income tax. Assume you are single with no dependents, have no adjustments or tax credit, and you take the standard deduction. The income tax is $

Explanation / Answer

Taxable income = wages less standard deduction less personal exemption = 20000 - 5950 - 3800 = 10250

Income tax on income upto $8700 is 10%, it is $870

Income tax on income from 8700 to 10250 is 15% on income in excess of 8700 that is (10250-8700)*15% = 232.50

Total income tax = 870+232.50 = 1102.50

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.