Final answer:
The annual income tax for Star is calculated by subtracting the tax allowance from the gross income to determine the taxable income and then applying the relevant tax rates according to the tax schedule. However, precise tax liability requires specific tax bracket information.
Step-by-step explanation:
To find the annual income tax for Star, who earns $99,520 per year with a tax allowance of $50,000, we first need to calculate the taxable income. The taxable income is the amount of earnings that is subject to tax, which in this case is the gross income minus the tax allowance. Therefore, the taxable income is $99,520 - $50,000 = $49,520.
Let's assume a tax schedule where the initial portion of income is taxed at a certain rate, followed by higher rates for subsequent portions of income (following the marginal tax rate concept). Suppose we have a tax schedule similar to the examples provided:
- Income from $0 to $9,075 is taxed at 10%.
- Income from $9,075 to $36,900 is taxed at 15%.
- Income from $36,900 and beyond is taxed at 25%.
Since Star's taxable income of $49,520 is within the second bracket, the calculation would resemble:
Tax = $837.50 + 0.15 × ($49,520 - $8,375)
The exact tax rates and brackets would depend on the specific tax laws in place; the provided table and percentages are purely for illustrative purposes. Without the exact tax bracket information, we cannot give a precise figure for Star's tax.