Final answer:
To calculate the net (take-home) pay for an individual with expenses and a gross income of $65,000, you need to deduct various taxes and expenses from the gross income. Calculate the deductions step by step and subtract them from the gross income to get the net pay.
Step-by-step explanation:
To calculate the net (take-home) pay for an individual with expenses and a gross income of $65,000, we need to deduct various taxes and expenses from the gross income. Let's calculate each deduction step by step:
- First, calculate the Social Security deduction by multiplying the gross income ($65,000) by the Social Security rate (6.2%).
- Next, calculate the Medicare deduction by multiplying the gross income ($65,000) by the Medicare rate (1.45%).
- Then, calculate the federal and state tax deduction by multiplying the gross income ($65,000) by the tax rate (15%).
- Finally, subtract the deductions calculated in steps 1, 2, and 3, as well as the expenses, from the gross income to get the net (take-home) pay.
Let's use the given expense amounts to calculate the deductions:
- Social Security deduction: $65,000 * 0.062 = $4,030
- Medicare deduction: $65,000 * 0.0145 = $942.50
- Federal and state tax deduction: $65,000 * 0.15 = $9,750
- Expenses: $4,900 + $4,600 + $7,400 + $1,000 = $18,900
Now, subtract the deductions and expenses from the gross income:
Net Pay = $65,000 - ($4,030 + $942.50 + $9,750 + $18,900)
Net Pay = $65,000 - $33,622.50 = $31,377.50
Therefore, the net (take-home) pay for an individual with the given expenses and a gross income of $65,000 is $31,378.