Question

Karl makes exactly $65000 a year as an electrician. If his federal income tax is 18% and his social security is 7%. What is Karls net income to base his budget on?

Answer 1

Answer: Karl's net income is 48,750

This does not count state and local taxes, but those are not part of this question.

Explanation:

Multiply 65000 × 0.18 to find the federal income tax: $11,700

Multiply 65000 × 0.07 to find the social security tax: $4550

Add those together to find the total tax to be subtracted from his gross income:

11700 + 4550 = 16250

$65,000 - $16,250 = $48,750