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Samantha had gross wages of $1,025, a 401(k) deduction equal to 10% of gross wages and health insurance of $100 per pay period. Samantha's taxable income is?

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Final answer:

Samantha's taxable income is calculated by subtracting her 401(k) deduction of $102.50 (10% of $1,025) and her health insurance cost of $100 from her gross wages of $1,025, making her taxable income $822.50 for that pay period.

Step-by-step explanation:

To calculate Samantha's taxable income, we need to start with her gross wages and then subtract any deductions she has. Her gross wages are $1,025. She has two deductions: a 401(k) contribution and health insurance.

First, we calculate the 401(k) deduction, which is 10% of her gross wages. So, 10% of $1,025 equals $102.50.

Next, we subtract the health insurance cost, which is $100 per pay period.

Therefore, Samantha's taxable income would be calculated as follows:

  • Gross Wages: $1,025
  • 401(k) Deduction: $102.50 (10% of $1,025)
  • Health Insurance: $100

Taxable Income = Gross Wages - 401(k) Deduction - Health Insurance

Taxable Income = $1,025 - $102.50 - $100

Taxable Income = $822.50

Thus, based on the provided information, Samantha's taxable income for a pay period would be $822.50.

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