Question

Due to temporary tax cuts in 2010, typical persons earning $50,000 per year had less taxes removed from their paychecks, so they received 2% more of their salary. The same persons also received $850 more on their federal tax return due to the tax cuts. How much extra money did a typical person earning $50,000 receive due to the tax cuts?

Answer 1

Answer: The correct answer is $1,850

Step-by-step explanation: There are two parts that determine how much extra money a typical person received if they earn $50,000.

First, they received 2% more of their salary. $50,000 x 2% = $1,000

In addition, they receive $850 on their federal tax return.

$1,000 + $850 = $1,850

The average person earning $50,000 will receive $1,850 due to tax cuts.