96.6k views
2 votes
Sam’s gross income is $1800 every other Friday. Calculate his net income if his Federal tax rate is 10% and his State tax rate is 3%.

a. $1446
b. $1620
c. $1701
d. $1530

User Dan Ling
by
8.3k points

1 Answer

2 votes

Final answer:

To find the net income from Sam's gross income of $1800, federal and state taxes are deducted, resulting in $1566.

The correct answer is approximately option (d).

Step-by-step explanation:

The student's question is regarding the calculation of net income after deductions such as federal and state taxes are taken from the gross income. To find the net income, we must calculate the total tax deductions and subtract them from the gross income.

Sam's gross income is $1800 every other Friday. To find the net income:

  1. Calculate the federal tax deduction: 10% of $1800 = $180.
  2. Calculate the state tax deduction: 3% of $1800 = $54.
  3. Sum the deductions: $180 (Federal) + $54 (State) = $234.
  4. Subtract the total tax deductions from the gross income: $1800 - $234 = $1566.

However, none of the provided options match the correct calculation of $1566. It is possible that other deductions such as Social Security and Medicare might also need to be considered, as these are common payroll deductions in addition to federal and state taxes.

Without considering these additional deductions, the answer is not explicitly given among the options a, b, c, or d.

User Rothrock
by
7.4k points