Question

HELP ASAP JNJNKNHBU

Typical starting salary: $66,640


2013 U.S. Federal Income Tax Rates for Single Adults


• 10% on taxable income from $0 to $8,925, plus

• 15% on taxable income over $8,925 to $36,250, plus

• 25% on taxable income over $36,250 to $87,850, plus

• 28% on taxable income over $87,850 to $183,250, plus

• 33% on taxable income over $183,250 to $398,350, plus

• 35% on taxable income over $398,350 to $400,000, plus

• 39.6% on taxable income over $400,000.


Question 1

Find your annual income tax based on this rate schedule.


Question 2

Find your annual social security tax (6.2 percent of total income).


Question 3

Find your annual Medicare tax (1.45 percent of total income).


Question 4

Now find your net annual income after taxes (subtract your federal income tax, social security tax, and Medicare tax, from your annual salary.

Answer 1

1. 12588.75

2. 4131.68

3. 966.28

4. 48953.29

Explanation:

1. salary = 66,640

he makes at least 8925 so that is taxed at 10 %

8925 at 10 % = 8925 * .10 = 892.50

he makes at least 36250 so 36250 less the 8925 is taxed at 15%

36250-8925 = 27325

27325 * .15 = 4098.75

he makes 66640 so part of his salary falls in the 25% range

66640-36250 = 30390 falls in the 25% range

30390*.25 = 7597.50

His total income tax bill is 892.5 +4098.75+7597.50 = 12588.75

2. social security tax is 6.2 %

66640 * .062 = 4131.68

3. Medicare is 1.45%

66640 * .0145 =966.28

4 total taxes = income + social security + medicare

total taxes = 12588.75 +4131.68+966.28

total taxes =17686.71

net annual income = income - taxes

net annual income = 66640-17686.71

net annual income =48953.29