Question

John earns $24,008 per year and claims 3 exemptions. His local tax rate is 5.5%. The amount for each exemption is $800. How much local income tax should be withheld from his monthly earnings? (Round your answer to the nearest cent.)

Answer 1

Johns monthly earnings will be $ 576,192

Answer 2

The correct answer is $99,04

Explanation:

Step 1: We must first deduct the total amount of exemptions John claims per year from his annual income.

$24008 - ($800 * 3)= $21608

The 5.5% tax must be applied to the amount of $21608.

Step 2: We now calculate the tax on the amount of $21608 and divide it by 12 months to get the monthly amount that must be deducted from your taxable earnings.

$21608 *
`(5,5)/(100)` = $1188,44

`(1188,44)/(12)` = $99,04

The amount to be deducted per month in taxes is $99.04.

Have a nice day!