The table below gives the tax due based on your yearly taxable income. If Taxabl

Question

The table below gives the tax due based on your yearly taxable income. If Taxable Income ls Between: The Tax Due Is: 0-$9,225 $9,226-$37,450 $37,451-$90,750 90,751-$189,300 $189,301-$411,500 $411,501-$413,200 $413,201+ 10% of taxable income $922.50 + 15% of the amount over $9,225 $5,156.25 + 25% of the amount over $37,450 $18,481.25 + 28% of the amount over $90,750 $46,075.25 + 33% of the amount over $189,300 $11 9,40 1.25 + 35% of the amount over $41 1,500 $119.996.25 + 39.6% of the amount over $413,200 ts Your monthly salary of 53000 translates to a yearly income (12 x 53000) of 536,000. Use this table to calculate: 1. Your tax due. 2 Your annual net pay (yearly take home pay after taxes) 3. Your monthly net pay. Round to the nearest cent as necessary

Explanation / Answer

Answer: (1) $4938.75 (2) $31061.25 (3) $2588.44 OR 258844 cents.

Explanation: The yearly income=12*3000=$36,000

Since yearly income is $36,000. So, it belongs in the range $9226-$37,450. So,

(1) Tax due=$922.50+15% of the amount over $9,225

Tax due=$922.50+15% of (36000-9225)

Tax due=$922.50+15% of 26775

Tax due=$922.50+{26775*(15/100)}

Tax due=$922.50+$4016.25

Tax due=$4938.75

(2) Annual net pay=total income-tax due

Annual net pay=$36000-$4938.75

Annual net pay=$31061.25

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